Wells Fargo plans to lay off an additional 1,800 employees from its mortgage department, after cutting about 2,300 jobs from the same unit in August.
Spokesman Alfredo Padillo said Thursday that the San Francisco-based bank is cutting jobs in the mortgage department because fewer people than it expected are refinancing their mortgages. The affected employees were given 60 days' notice, Wells Fargo said.
Average rates on fixed mortgage loans declined this week as the economic recovery showed signs of slowing. Freddie Mac said Thursday that the average rate on a 30-year home loan fell to 4.5 percent from 4.57 percent last week. The average 15-year loan fell to 3.54 percent from 3.59 percent last week.
A new study suggests that the steady rise in U.S. home values is increasingly motivating homeowners to make paying their mortgage on time a priority.
Credit reporting agency TransUnion said Thursday that its study examined late payment rates of mortgages, credit cards and auto loans among consumers with the three types of financial obligations. The study found consumers are still most likely to make timely payments on their auto loans ahead of credit cards and home loans. But through last year, as home values have increased, the late-payment rate on mortgages nearly closed the gap with credit cards.