Citi and Wells Fargo Announce Cuts in Mortgage Lending Staff
By: Ken Chase.
In the last several weeks, Wells Fargo has confirmed that 75 workers in its Iowa branches will no longer have jobs as of late October. Now, Citi has revealed that it too will be reducing its staffing levels, with layoffs that are expected to number no more than 100 workers. Both banks’ layoff plans are focused on staff in their respective mortgage lending teams.
According to reports, Citi has experienced a noticeable decline in value for 2022 mortgages, with those values dropping by roughly 15% from a year ago. In a statement announcing the layoffs, Citi expressed its commitment to helping the affected employees locate new job roles either internally or at other companies. As the statement noted, “The decision to eliminate even a single colleague role is very difficult, especially during these challenging times.”
For its part, Wells Fargo has focused on mortgage lending positions in Iowa. That state’s capital city is the home base for the Wells Fargo mortgage division, so it is unsurprising that so many of the bank’s layoffs are impacting Iowa workers. So far this year, Wells Fargo has laid off hundreds of Iowa workers, with more than 90 additional layoffs expected by the end of September.
Wells Fargo has reported significant declines in revenue from its mortgage lending division in 2022, with revenue dropping by more than 40% compared to last year.
Meanwhile, Citi is reportedly looking to expand its workforce—in Ireland. As part of its effort to refocus its UK operations to a less expensive market, the company plans to add some 400 employees for its offices in Belfast.