Citigroup is the latest company to reduce its mortgage staff as higher interest rates continue to reduce housing market demand.

Sources close to the situation said fewer than 100 roles were removed as part of the layoffs.

The firm said: “Citi has made a small number of staffing reductions within our mortgage team due to internal streamlining of functions.

READ MORE: WELLS FARGO WILL CUT 75 EMPLOYEES IN THE NINTH WAVE OF LAYOFFS

“The decision to eliminate even a single colleague role is very difficult, especially during these challenging times.

“We are doing our best to support each individual by helping them to find new employment opportunities within Citi or outside the firm.”

Soaring prices and a sharp surge in mortgage rates have hampered the demand of many would-be homebuyers.

Mortgage application flow has dropped by more than half this year, and pending home sales in the United States fell to their lowest level since the Covid-19 outbreak began.

Citigroup’s US retail bank originated $7.2 billion in mortgages in the first six months of the year, a 15 percent decrease from last year.

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Recently, JPMorgan Chase fired hundreds of home-lending staff and reassigned hundreds more to new roles inside the bank.

Wells Fargo is considering ways to reduce its huge mortgage business, including layoffs.

Citigroup, which employs over 230,000 people worldwide, has increased its mortgage workforce as part of an effort to expand in US retail banking.

Darin Lugat of Wells Fargo was recently appointed to supervise home loans in New York, New Jersey, and the Northeast suburban markets.

Source: Bloomberg

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