Wells Fargo to start laying off Mortgage Staff

Wells Fargo confirmed Friday its laying off an undisclosed number of home lending employees due to mortgage market conditions: https://www.iqstock.news/n/wells-fargo-confirms-mortgage-staff-layoffs-3789242/

Interestingly enough, this happened a few weeks after a local SF fintech startup active in the lending sector started also laying people off: https://www.bizjournals.com/sanfrancisco/news/2022/04/19/sf-mortgage-fintech-cuts-jobs-is-wells-fargo-ne.html

“The home lending displacements this week are the result of cyclical changes in the broader home lending environment,” the bank said in a statement. “The employees affected by these changes have each been an essential part of our success. We are carrying out displacements in a transparent and thoughtful manner and providing assistance, such as severance and career counseling.”

They seem to be bracing for even higher rates, has Jay Bryson says in this interview.

It seems that cash-out refinancing was also significantly growing the the past few years due to lower rates and most likely these folks were employed in this specific line of work. Could this is another huge warning sign that the housing bubble has already popped?

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