According to a recent CNBC report, Wells Fargo CFO Timothy Sloan stated that “Originations are going to be down around 30 percent, to about $80 billion,” for the quarter. “We’re still going to originate about $80 billion in mortgages, but it’ll be down 30 percent,” Sloan reiterated. He also indicated the increased rates affecting refinance volume, industry-wide, citing that refinances are down somewhere in the vicinity of 60 percent.
On top of an estimated reduction of 30 percent for the third quarter, comes news that Wells Fargo plans on laying off an additional 1,800 jobs in their home-loan production business. High borrowing costs lead to slower refinances, however; the company has been steadily firing workers, some with only sixty days’ notice.
"As we continue to work through the demand each month, we size the business appropriately," spokeswoman Christine Shaw said. "We'll continue to do that until it's the right mix."
Twin Cities Home Mortgage, a division of Weels Fargo, was hit the hardest, with 300-plus jobs on the chopping block. Over the past month, over 500 jobs altogether have been axed in its Twin Cities mortgage unit. In the wake of this latest round of firings, Wells Fargo announced recently that it is speculated to let go around 15,000 employees by the end of 2014.