Wells Fargo Cuts More Than 500 Mortgage Staff on Strategy Shift



Hannah Levitt
Wed, February 22, 2023 

(Bloomberg) -- Wells Fargo & Co. cut hundreds of jobs in its mortgage unit this week, adding to thousands of cuts last year, as the firm retreats from a business it once dominated.

The latest reductions affected more than 500 employees, according to a person familiar with the matter. Wells Fargo announced a “new strategic direction” for the business last month that includes exiting correspondent lending, a pivot that Chief Financial Officer Mike Santomassimo said last week is “largely done.” The firm also said it will shrink the portfolio of loans it services.

“We announced in January strategic plans to create a more focused home lending business,” the company said in a statement. “As part of these efforts, we have made displacements across our home lending business in alignment with this strategy and in response to significant decreases in mortgage volume in the broader market environment.”

The cuts add to thousands across the home-lending industry in recent months after the Federal Reserve raised interest rates and cooled what had been a red-hot housing market. JPMorgan Chase & Co. eliminated hundreds of positions in its mortgage unit this month, on top of reductions last year.

CNBC reported earlier Wednesday that Wells Fargo was cutting more mortgage jobs.