![]() And total mortgage originations for the quarter were $14.6 billion, down 70% from a year ago. The bank said Tuesday it was ending its correspondent mortgage operation - purchasing loans originated by other lenders - and scaling back its loan servicing businesses.įourth-quarter correspondent loan originations fell 58% to $6.4 billion compared to the same quarter a year earlier, the company reported Friday. "Although we have reduced headcounts in this business throughout 2022, this charge includes the actions we plan to take in 2023 related to the mortgage announcement we made this week," Chief Financial Officer Mike Santomassimo said in the call with analysts. Some 425 employees already have lost their jobs in the Des Moines metro, where Wells Fargo, the region's largest private employer, has about 13,000 workers. Wells Fargo also reported $353 million in severance costs tied to layoffs in home lending, cuts that are expected to continue this year. CEO Charlie Scharf told analysts Friday said that "while our risk and regulatory work hasn’t always followed a straight line, and we have more to do, we have made significant progress, and are moving forward." Last month, Wells Fargo agreed to pay $3.7 billion to settle charges that it charged illegal fees and interest on auto loans and mortgages and incorrectly applied overdraft fees against savings and checking accounts.Įxecutives said they believed the bulk of their regulatory problems are behind them. Expenses hit $16.2 billion, including billions in regulatory fines. 31, down nearly 6% from the same quarter a year earlier. Wells Fargo reported $19.7 billion in revenue for the quarter that ended Dec. ![]() The company, which has already slashed hundreds of jobs in the metro area, said more cuts are coming. The grim report comes days after the San Francisco bank announced it was cutting back on its mortgage business, a major Des Moines metro employer, with its mortgage division based in West Des Moines. Banking giant Wells Fargo reported Friday that its fourth-quarter earnings fell 50% to $2.9 billion, dragged down by costs tied to billions in regulatory fines and repayments for lending infractions.
0 Comments
Leave a Reply. |