The San Francisco-based lender has saidrnit expects its refinancing business to be lower for the rest of the year asrnhigher interest rates cut demand for refinancing.  The company had already announced two smallerrnreductions to its mortgage staff, 350 announced in mid-July and a 758 personrnlayoff announced on August 7^th.  Three hundred additional jobs will be cut overrnthe next 11 to 17 months as the company winds down eight joint ventures.  The company said it had just over 11,400 loanrnofficers at the end of last March.</p

In a staff memo obtained by a number ofrnnews agencies, Franklin Codel, head of mortgage production for the bank, saidrnthat refinancing had accounted for about 70 percent of the bank’s mortgagernapplications during the first half of the year but that has now dropped tornabout 50 percent and was expected to decrease further in upcoming months.  </p

“We’ve had to recalibrate our businessrnto meet customers’ needs,” the memo said, “and to ensure we’re operating as efficiently and effectively as possible.  Unfortunately, displacements within our teamrnare necessary.” </p

Employeesrnwere given 60 days notice of the layoffs on Wednesday. The banks said it willrntry to retain as many staff as possible by finding them other positions at thernbank.  </p

WellsrnFargo is the country’s largest mortgage lender writing and servicing onernout of five mortgage loans.  The company has written over $100rnbillion in home loans in each of the last seven quarters.  However it told analysts on July 12 that it didrnnot expect to repeat that in upcoming quarters as mortgage rates rose.

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