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August 27, 2018

Wells Fargo to lay off 638 jobs in mortgage division

US bank Wells Fargo has announced around 638 job cuts in its mortgage division in the wake of declining home sales.

According to the development, first reported by The Orlando Sentinel, the bank has given 60 days of notice to the affected employees.

The job cuts were affected to retail fulfillment and servicing jobs in Orlando, Florida; Ranch Cordova, California; Colorado Springs, Colorado, and Charlotte, North Carolina, Reuters reported citing Wells Fargo spokesman Tom Goyda.

Goyda said: “After carefully evaluating market conditions and consumer needs, we are reducing to better align with current volumes.”

Of the 638 job cuts, 137 will be concentrated in Orlando.

The company’s mortgage banking business has posted a 33% fall in income in the second quarter from the previous year.

Homebuyers have been discouraged by rising interest rates and a downturn in the home loans market.

The move is in response to a slowdown in applications and originations, as well as lower number of clients in default, according to The Financial Times.

Wells Fargo has been engaged in layoffs in order to cut costs, with the company eliminating around 126 staff within auto lending and payments and virtual solutions teams over the course of the month, the publication reported.

Earlier this year, the bank was ordered to pay fines worth $1bn over alleged abuses by US regulators.

Key business areas subject to regulatory scrutiny included the mortgage and auto lending division.

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