Bloomberg News reports that Citigroup Inc. has joined its rivals to trim mortgage workers’ ranks as surging interest rates have continued to shrink the housing market. The company was found to have eliminated less than 100 positions, as to an individual familiar with the issue and requested anonymity.
A Citigroup professional stated in an email that Citi has been on a spree of reducing the number of workers in the mortgage team since it wants to streamline the department’s functions. The decision to remove even a single worker is not an easy task, especially during a period when things are quite challenging. The Citigroup spokesperson also said they were trying hard to help each other get into new employment opportunities, either outside Citigroup or within Citi itself.
What led to the Workforce Curb?
Escalating costs and a faster-than-expected rise in mortgage rates have dampened the demand for many prospective home buyers. The volume of mortgage applications has plunged beyond 50% in the present year, and pending home sales in the United States in July have dropped to the lowest level since the pandemic struck roots.
The retail bank of Citigroup’s US branch was found to originate $7.2 billion in mortgages in the first half of the current year, which is a 15% decline compared to what it was just one year ago. The company’s move came following JPMorgan Chase & Co’s layoff of hundreds of employees related to the home-lending division and shifted more than a hundred to new positions within the bank. In the meantime, Wells Fargo & Co. is finding solutions as to how it can shrink the vast empire in the mortgage, which also includes the curbs on jobs.
Bloomberg News reports that Citigroup has a worker strength of more than 230,000 individuals across the globe and has added many to the mortgage ranks amidst an effort to expand in US retail banking.
The firm was found hiring Wells Fargo’s Darin Lugat of late so that home lending could be monitored for the New York region, Northeast suburban markets, and New York. Liz Bryant is the reporting boss of Lugat. Liz Bryant is responsible for leading the retail mortgage sales and became associated with Wells Fargo last year.
