Citi cuts less than 100 mortgage jobs as market slows

Following in the footsteps of other banks and mortgage companies, Citi (NYSE:C) cuts less than 100 jobs to cope with a slowing housing market amid rising interest rates.

“Citi has made a small number of staff reductions within our mortgage team due to internal streamlining of functions,” a Citigroup said in an emailed statement.

The mortgage industry, in general, has experienced a slump due to rising interest rates, lower origination volumes and lower mortgage financing. According to the Mortgage Bankers Association’s seasonally adjusted index, purchase requests are down 23% year-on-year, while refinance activity is down 83% from the same week ago. a year.

Lower mortgage demand is impacting Citigroup’s refinancing activity. US retail bank Citigroup issued $7.2 billion worth of mortgages in the first six months of the year, down 15% from a year ago.

Fed Chairman Jerome Powell at the Jackson Hole symposium said policymakers were committed to raising rates and maintaining a period of below-trend growth in order to fight inflation and curb inflation. restore price stability.

Citigroup (C) had hired tens of thousands of employees between 2018 and 2020 to manage soaring mortgage originations and refinances driven by low interest rates.

Banks and mortgage companies: JPMorgan Chase & Co. laid off hundreds of home loan employees and transferred hundreds more to new positions within the bank.

Wells Fargo & Co. (New York Stock Exchange: WFC) announced a new round of layoffs on September 1. The banking giant plans to cut 75 jobs in Ankeny, Clive, Des Moines and West Des Moines between September 28 and October 25.

Redfin has disclosed plans to cut its workforce by around 6%.

On June 14, the real estate brokerage firm Compass announced that it was reducing its workforce by 10%.

Mortgage technology company, Blend, announced on its second quarter conference call that it has cut more than 400 positions or 25% of our workforce since April. has reportedly cut half its workforce — or more — since December.

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