Wells Fargo Cuts Another 161 Mortgage Jobs In Mpls

The bank said it is scaling back its mortgage services due to higher interest rates, and it announced plans to cut 2,323 jobs nationwide—161 of which are reportedly in Minneapolis.

Wells Fargo & Company is laying off 2,323 home mortgage employees—161 of whom work in Minneapolis—a move that was driven by higher interest rates and a slowing mortgage refinancing market, according to media reports.
The latest wave of job cuts follows a similar decision in July to trim 356 positions from its home mortgage division nationwide, 34 of which were eliminated in Minneapolis.
Bank spokeswoman Peggy Gunn told local media that the bank is “reducing staff to better align and increase the efficiency of our organization.”

“While interest rates remain very favorable by historical standards for home buyers and lenders, the fast-paced consumer demand for mortgage refinancing we experienced throughout 2012 and early 2013 is slowing somewhat,” Gunn said.
The affected employees were given a 60-day notice, and while the bank is working to find alternative positions for affected workers, they will be eligible for tenure-based severance if work in other areas of Wells Fargo is unavailable. About 8,500 of Wells Fargo’s nearly 20,000 Minnesota employees work in its home mortgage division, according to the Star Tribune.

The San Francisco-based bank is among Minnesota’s 10 largest employers and currently operates 211 branch, home mortgage, and advisor offices in the state.