Farewell, mortgage processors?

Wells Fargo announced layoffs at its home lending division late last week. Sources told HousingWire that it largely affected mortgage processors and underwriters. Hundreds were laid off, they said. 

Good afternoon! Was this newsletter forwarded to you? Sign up here. Hello, LOs!    Wells Fargo announced layoffs at its home lending division late last week. Sources told HousingWire that it largely affected mortgage processors and underwriters. Hundreds were laid off, they said.    The stagecoach offered little in the way of specifics, but it's not an unexpected twist. In its earnings call earlier this month, Wells Fargo reported that it originated $37.9 billion in Q1, down 21% quarter-over-quarter and 27% year-over-year. Revenue was down and mortgage banking noninterest income came in at $693 million, down from $1.3 billion year-over-year.   "The mortgage origination market experienced one of its largest quarterly declines that I can remember, and it will take time for the industry to reduce excess capacity," CEO Charlie Scharf said.   Practically speaking, what does this culling mean for LOs? On the one hand, all that "excess" capacity means many lenders are closing loans faster and – theoretically – providing more support for LOs. On the other hand, there's only so much money to go around when volume drops significantly. It's inevitable.    Have the thinning ranks of processors and underwriters affected your work as an LO? How much more "capacity" needs to be shed at your lender? Share your thoughts with me anonymously at james@hwmedia.com.    James Kleimann Managing Editor, HousingWire Wells Fargo cuts mortgage jobs amid poor outlook Mortgage, HW+ Exclusive Content Wells Fargo is cutting jobs in its home lending business, just days after reporting weak mortgage earnings in the first quarter of 2022. eClosing: How to Generate More Revenue in Today's Market Join Notarize for an interactive discussion where you'll learn how to generate more business, close loans faster, and reduce funding cycle time, while providing an exceptional borrower closing experience. Register Today! Sponsored by Notarize What lenders should know about today's economic climate Presented by Polly Between the recent rate hike from the Federal Reserve, the ongoing war in Ukraine and continued economic recovery following the pandemic, mortgage lenders across the country are managing a volatile housing market. Learn how updating your mortgage technology stack can help you get ahead in today's unpredictable lending environment. How Blend plans to survive a shrinking mortgage market Mortgage, Proptech, HW+ Exclusive Content Blend isn't changing its strategy to survive a shrinking mortgage market, even though a drop in originations is sapping its revenue stream and forcing it to trim its workforce. 8 Tips To Build Your Referral Business Looking to drive revenue while interest rates rise? Referrals — whether they're from realtors or past customers — can be a key source of leads without spending a lot on marketing. Attract referral leads and get more loans closed with these 8 steps. Get the Guide Sponsored by Matic Non-QM lenders struggle to navigate volatile waters Mortgage, HW+ Exclusive Content HousingWire queried more than half a dozen non-QM lenders with a series of questions about the spiraling rate crisis now plaguing the housing market. Here's what they said. HousingWire, 433 East Las Colinas Blvd., Suite 830, Irving, TX 75039 Manage preferences

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