Wells Fargo & Co (NYSE:WFC) eliminates 2300 jobs in the mortgage production

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Dallas, Texas 08/23/2013 (Financialstrend) – The biggest home lender in the United States, Wells Fargo & Co (NYSE:WFC) had recently announced that there would be an elimination of around 2300 jobs in the mortgage production primarily attributed to the slumps in the demand for mortgage refinancing and to the prospects for an increase in the interest rates. While there had been many other minor layoffs taken up by the company in the past few weeks across its operations in the country, this new announcement proves to be a major reduction in the workforce of the lender. The total reduction in the workforce would amount to around 20 percent of the total 11406 officers employed in the mortgage loan division of the company.

Wells Fargo & Co (NYSE:WFC) had commented that mortgage lending will face continuous slow down for the rest of the fiscal year and that the prospects for an increase in the interest rates would further make refinancing options to be less attractive. The mortgage loans, which contributed to around 70 percent of the applications in the mortgage market during the first half of this year had now dropped to around 50 percent of the applications in the recent months.

Wells Fargo & Co (NYSE:WFC) had traded on Thursday to report a gain of 0.28% in the share prices and had finally closed the day at $42.48 per share. The stock was ranging between low of $42.18 and high of $42.63 per share and presently the year long price levels for the stock ranges between low of $31.25 and high of $44.78 per share. On Thursday the stock has reported around 14.04 million trades in its shares, while on an average the stock had reported 18.63 million trades per day.

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