Wells Fargo continued its retreat from residential lending this week, laying off hundreds of mortgage bankers.
According to Bloomberg, the latest layoffs affected more than 500 employees, according to a source familiar with the situation. Last month, Wells Fargo announced a “new strategic direction” for its home lending business, which includes downsizing its servicing portfolio and exiting the correspondent channel.
The decision to reduce its size and pivot to a smaller, less complex business focused on bank customers and minority communities were “largely done,” according to chief financial officer Mike Santomassimo.
The move follows the bank’s announcement in January that it is taking its home lending business in a “new strategic direction” which involves downsizing its servicing portfolio and exiting the correspondent channel.
The bank’s CFO, Mike Santomassimo, stated that the decision to pivot towards a smaller, less complex business focused on bank customers and minority communities was “largely done”.
Wells Fargo has been reducing its workforce in the home lending unit for the past year, with thousands of positions eliminated so far.