Citigroup to cut 1,000 jobs in mortgage business
Employees in Las Vegas and Irving facilities will be mainly affected.
Citigroup, the sixth-largest mortgage lender in the US, is planning to cut about 1,000 jobs in its mortgage business, primarily due to fall in new loans and refinancing volumes.
The bank will eliminate about 760 positions at its facility in Las Vegas, 100 in Irving facility, while the remaining will be in other facilities. The latest cuts make up about 8 per cent of the bank’s mortgage unit.
A Citigroup spokesman in a statement said: “In response to decreased demand for mortgage originations and refinancing, CitiMortgage is eliminating some positions in sales, fulfillment, underwriting and mortgage default functions. These actions reflect our ongoing efforts to increase operation efficiency, adapt to changes in the marketplace, and position the business for the future.”
Earlier in July, the bank laid-off about 120 employees in its Danville facility.
In the recent times, mortgage lender Wells Fargo eliminated more than 4,000 jobs, while Bank of America (BofA) laid-off about 2,100 employees due to slump in refinancing market.
Industry analysts anticipate that the slowdown in mortgage refinancing will affect the bank’s third-quarter revenues.
Rising interest rates have restricted consumer choice in buying new homes. According to the US Mortgage Bankers Association, mortgage applications for new home purchases decreased by 14 per cent in August compared to July.