Wells Fargo lays off 500 mortgage staff as downsizing continues

Wells Fargo has continued to retreat from the residential lending arena, laying off hundreds of mortgage bankers this week.

The latest job cuts impacted more than 500 employees, Bloomberg reported, citing a person with knowledge of the situation. Wells Fargo announced last month that it’s taking its home lending business in a “new strategic direction,” which involves downsizing its servicing portfolio and exiting the correspondent channel.

The decision to reduce its size and pivot to a smaller, less complex business focused on bank customers and minority communities were “largely done,” according to chief financial officer Mike Santomassimo.