JPMorgan Chase (JPM) is reducing headcount by about 400 in its consumer mortgage banking unit as parts of the market slow down, the Wall Street Journal reports, citing people familiar with the matter.
The move affects employees in cities including Jacksonville, FL; Columbus, OH; Phoenix and Cleveland. One of the largest mortgage lenders, JPMorgan has about 34,000 mortgage-banking employees.
Home sales have slowed as mortgage rates and home prices rise amid a lack of homes for sale and reduced tax incentives for home ownership in some areas. Refinancing has also slowed due to rising mortgage rates.
Delinquencies have declined, as well, and current mortgages require fewer servicing resources than delinquent mortgages.
Previously: Wells Fargo lays off 638 in mortgage business: Financial Times (Aug. 24)
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