Wells Fargo, which is one of the largest mortgage lenders in the US, said the redundancies will include lending employees in Alabama, North Carolina and Iowa.
The employees of mortgage finance, a division of a consumer lending group, who are on the brink of losing their jobs have been given a 60-day notice.
The bank said since the interest rates "remain very favorable by historical standards for homebuyers, a recent rise in rates has affected consumer demand for mortgage refinancing, causing volumes to fall below what we experienced throughout 2012 and early 2013."
The US bank reported in July this year that its mortgage banking division earnings decreased by 3%, however mortgage applications and mortgage originations increased.
At the end of the second quarter 2013, the bank employed nearly 274,300 staff and the latest announcement brings the total number of job cuts to 3,000 since July, which equates to over 1% of the bank’s total workforce.
