| NEW YORK, Sept 19
NEW YORK, Sept 19 Wells Fargo & Co, the
largest U.S. mortgage lender, said on Thursday that it will cut
1,800 jobs in its home loan business due to lower demand for
refinancing amid higher interest rates.
The fourth-largest U.S. bank provided a 60-day notice on
Wednesday to employees whose jobs were to be eliminated, the
bank said in a statement.
Chief Financial Officer Tim Sloan told investors at a
conference on Sept. 9 that the San Francisco bank had laid off
3,000 employees in its mortgage business so far in the third
quarter. Sloan also said Wells Fargo expected to make $80
billion in home loans in the third quarter, nearly 30 percent
below its second-quarter figure.
As mortgage revenue declines, the bank is looking to trim
expenses in the unit, a process that usually takes one to two
quarters, Sloan said.
News of the planned layoffs was first reported by Bloomberg
News on Wednesday.
Wells Fargo made more than one of every five U.S. home loans
in the second quarter, according to Inside Mortgage Finance, an
Wells Fargo shares were down 0.7 percent at $43.02 on the
New York Stock Exchange on Thursday morning.