By Dow Jones Business News, September 19, 2013, 10:55:00 AM EDT
Wells Fargo & Co. ( WFC ) is cutting over 1,800 mortgage-related jobs across the country, the latest round of cutbacks
as the nation's largest mortgage lender continues to grapple with the fading of a refinancing boom that helped boost the
U.S. home-loan market and bank earnings.
A spokesman for the bank, Tom Goyda, said the cuts are "just another round of reductions we are making to adjust to
the business cycle."
The fourth-largest U.S. bank by assets in August said it was cutting 2,300 mortgage-related jobs. Thursday, Mr. Goyda
said the latest round of cuts are on the fulfillment and processing side.
Wells Fargo has been pulling back as a wave of home refinancing that spurred profit growth and allowed the bank to
command a nearly 30% market share last year has waned. Wells Fargo is also considered a bellwether for the U.S. housing
Mr. Goyda said the job cuts will impact employees across the country. He wouldn't say if the bank plans to cut more
staff, instead saying Wells Fargo will make those determinations going forward. He also didn't detail what cost savings
Wells Fargo would see from the latest move.
The cuts were first reported by Bloomberg News and The Star Tribune.
Wells Fargo isn't the only bank feeling a pinch from the refinancing pullback. Late August, peer Bank of America Corp.
( BAC ) notified about 2,100 employees that they were being let go largely due to a decline in refinancing activity.
Shares of Wells Fargo were up 1.1% to $43.78 in premarket trading. The stock has risen 27% so far this year.
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