Wells Fargo mortgage employees prepare for layoffs

One source said the number of mortgage loan officers may decrease by more than half.

Updated: November 2, 2022 - 4:12pm

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Wells Fargo decreased its total workforce by about 14,000 people in the third quarter, and employees are concerned the bank will cut more staff members as loans are reportedly down as much as 90% from this time last year. 

The bank has been working on processing about 18,000 loans during the first few weeks of the fourth quarter, down 90% from 2021, CNBC reported Wednesday citing "people with knowledge of the company's figures." 

Home refinancing has also plunged as borrowing costs skyrocketed from 3% to more than 7% for a 30-year loan since last year. Rates may climb more after the Fed raised interest rates on Wednesday.

One source said the number of mortgage loan officers may decrease by more than half from over 4,000 employees to less than 2,000, as many salespeople have not closed a loan in weeks.

Another person said most of the departures have been voluntary, however. 

"The changes we've recently made are the result of the broader rate environment and consistent with the response of other lenders in the industry," a Wells Fargo spokesperson said. "We regularly review and adjust staffing levels to align with market conditions and the needs of our businesses."