One of the fifth largest US mortgage originator said that due to the rising interest rates, consumers are unwilling to buy new homes and refinance mortgages, which has negatively impacted the mortgage business.
The New York-based company said that the job cuts will be implemented across mortgage sales, underwriting, fulfillment and default units.
The majority of the redundancies will be in Las Vegas, where out of total 1,100 jobs, nearly 750 positions will be eliminated, while rest in and Irving, Texas, which currently houses 5,800 employees.
The proposed job cuts represent approximately 8% of the total 13,000 jobs in Citi’s mortgage division.
"While difficult, these actions reflect our ongoing efforts to increase operational efficiency, adopt to changes in the marketplace and position the business for the future," Mark Rodgers, a company spokesman told Bloomberg.
Currently, a 30-year fixed-rate home loan charges more than 4.6%, compared to 3.5% before the summer, and this sudden surge in mortgage rates has reduced consumers’ demand.
In a similar move,Wells Fargo is slashing more than 4,000 jobs, while Bank of America is plans to reduce nearly 2,100 positions in mortgage-refinancing business.
JPMorgan Chase is likely to axe approximately 19,000 employees over the next two years in states including California, Texas, New York, New Jersey, and Florida.
