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Like others in the mortgage industry, San Francisco-based Wells Fargo laid off workers in their home lending unit.
In the latest documents filed with the Iowa State Department of Workforce Development, Wells Fargo said it will lay off 114 people in its offices around Des Moines. Between the most recent layoffs and earlier ones, the bank will have laid off 197 people in the Hawkeye State this year.
“The latest Mortgage Bankers Association (MBA) forecast has total originations for 2022 at $2.4 trillion, down 40% year-over-year, with refinances down over 70%,” Wells Fargo spokesperson Lylah Holmes said. “The home lending displacements are the natural result of cyclical changes in the broader home lending environment, as has been acknowledged by most mortgage providers across the industry in recent weeks. Employees affected by these changes have each been an essential part of our success.
According to Bankrate, which tracks mortgage rates, the average rate for a 30-year fixed mortgage is 5.83%, up from 3.56% in March. In addition, the MBA reported mortgage applications dropped again last week.
“We are carrying out displacements in a transparent and thoughtful manner and providing assistance, such as severance and career counseling. Additionally, we are committed to retaining as many employees as possible. Of those impacted in home lending so far this year, about 35 percent are moving into other roles within Wells Fargo,” Holmes said.