Bad news has hit the mortgage industry across the United States, as Wells Fargo and JPMorgan Chase have announced job cuts in their divisions totaling nearly 2,000 positions on top of additional losses.
Wells Fargo plans to lay off 1,800 employees from their mortgage division, one month after they cut another 2,300 positions from the same unit, according to the Associated Press. The company said they are making the cuts because a lower number of people are refinancing mortgages than they expected. Layoffs were spread around the country, though some employees may be shifted into different positions within the company.
An additional 145 mortgage employees from JPMorgan Chase have been laid off in its Chicago-area offices, according to Chicago Business. The layoffs were said to be caused by company restructuring and reduced demand.
These job losses follow other significant trends around the country in recent months, as borrower demand has declined as a result of higher interest rates in the market over the past few months. This downturn comes one year after mortgage servicers went on hiring sprees to meet demand from near-record-low rates.