Citigroup Lays Off 1,000 Mortgage Employees
Citigroup said Monday it laid off 1,000 workers in its mortgage business, as a refinancing boom that bolstered bank profits continues to wane.
The positions, which are primarily in Las Vegas, Nev., and Irving, Tex., include jobs in sales fulfillment, mortgage underwriting and mortgage default functions.
The bank in July announced it laid off about 120 employees in a Danville, Ill. facility. A person familiar with the bank's plans said this will be its largest layoff associated with the weakening mortgage business.
"In response to decreased demand for mortgage originations and refinancing, CitiMortgage is eliminating some positions," said a spokesman in a statement. "These actions reflect our ongoing efforts to increase operation efficiency, adapt to changes in the marketplace, and position the business for the future."
He said the bank is working to help some employees find other positions at the bank.
Citi is the latest bank to cut back on its mortgage workforce in the wake of rising interest rates that have pared back consumer interest in purchasing new homes and refinancing current mortgages. Wells Fargo & Co., the nation's largest mortgage lender, has cut more than 4,000 jobs in recent months. Bank of America Corp. cut about 2,100 employees.
Citigroup is the sixth-largest mortgage lender in the U.S. with 3.9% market share as of the second quarter, according to Inside Mortgage Finance. The bank reported $17.2 billion in mortgage originations in the second quarter, down 4% from the previous quarter.
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