Citi cuts mortgage workforce in reorganization

depositary bank Town reduced the workforce in its mortgage business, following soaring rates and a reorganization of its operations.

“Citi has made a small number of staff reductions within our mortgage team due to internal streamlining of functions,” a spokesperson said in a statement. Bloomberg News first flagged the layoffs and reported that less than 100 jobs had been cut.

The spokesperson said Citi “does its best to support each individual by helping them find new employment opportunities within Citi or outside the company.”

According to an analysis of data by Inside Mortgage Financing.

The bank funded $16 billion in residential mortgages from January to June, down 5.9% from the same period in 2021.

Citi’s downsizing follows new leadership in its mortgage business. In August 2021, Citi hired Liz Bryant as Head of Retail Mortgage Sales directly from Wells Fargolargest custodian bank by origination volume in the United States

Beginning late last year, Bryant was tasked with revamping Citi Mortgage, aiming to better align with Citi’s retail banking division.

The bank’s latest move was the hiring of industry veteran Darin Lugat to be the new loan division manager for New York, New Jersey and Northeast Suburbs in July. Prior to Citi, Lugat spent eight years as a market manager for Wells Fargo.

Like Citi, other custodian banks are reducing their mortgage lending headcount. Wells Fargo, for example, will lay off 75 employees from its home loan division in Iowa by the end of October, according to Worker Adjustment and Retraining Notices (WARNs) submitted to the Iowa Workforce Development. The bank cut 197 mortgage jobs in Iowa in earlier layoffs. JPMorgan Chase and US Bank also cut an undisclosed number of jobs in their mortgage divisions.

Michael A. Bynum