Wells Fargo has laid off hundreds of employees across its mortgage business, Bloomberg reported, citing people aware of the US lender’s plans

The job cuts took place across the country, the sources told the publication. However, details on the number of jobs lost or units that have been impacted were not immediately known. 

The sector, which was growing up until last year, has suffered from rising inflation and mortgage rates, which are at the highest level in two decades. 

An aggressive monetary policy tightening campaign by the US Federal Reserve has put pressure on refinancing as well.

According to the report, Wells Fargo has already cut hundreds of jobs in its mortgage division this year and the most recent layoffs are in addition to those.

“We regularly review and adjust staffing levels to align with market conditions and the needs of our businesses,” a representative for Wells Fargo was quoted by the publication as saying. 

In October this year, Wells Fargo chief financial officer Mike Santomassimo told investors that the bank expects the home lending business to “remain challenging in the near term.”

In the first nine months of this year, the division reported a 70% decline in fees, the report said, adding that the company intends to take a longer-term break from the mortgage business.

In June this year, JPMorgan laid off and reassigned hundreds of home-lending employees due to the ‘cyclical changes’ in the mortgage space.