As the Mortgage Market Weakens JPMorgan Chase Lays Off Hundreds of Employees

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Last updated on June 27th, 2022 at 01:06 pm

Amanda Byford
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JPMorgan Chase (NYSE: JPM) reportedly laid off hundreds of employees in its home lending unit and transferred hundreds more to other parts of the bank as mortgage pressure to buy loans and refinance increased.

In total, the event will affect more than 1,000 employees, with nearly half moving to other parts of the company, Bloomberg said on Wednesday, referring to people familiar with the matter. The company refused to confirm the data published by Bloomberg.

“Our employees’ decisions this week were the result of cyclical changes in the mortgage market. 

We have been able to actively move many affected employees to new roles within the company and work to help others. 

The employees concerned have found new jobs in Chase and abroad,” he said. company spokesperson via email. Rising interest rates on loans are changing the entire industry for real estate, home builders, and construction products. 

On Wednesday, RBC Capital Markets analyst Mike Dahl downgraded five stocks of home builders and construction products after mortgage rates rose 50 basis points in the past two weeks and 270 bps since the beginning of the year.

Last week, Redfin (RDFN) unveiled plans to reduce staff by ~ 6%, and Bloomberg announced that Real Estate Brokerage Compass (COMP) is reducing staff by 10%.

Reference Source: Seeking Alpha

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