Citigroup cuts mortgage lending staff after housing market downturn

Citigroup Inc. has backed rivals in cutting its mortgage lending staff. This can be attributed to low demand in the housing market caused by rising interest rates.

About 100 positions have been cut, according to an insider's statement.

Citigroup sent emails saying the cuts were made to streamline functions. It also said in its email that it was difficult to make the decision to cut each employee, as well as the organization will help with job placement in other parts of the organization and outside the organization.

Rising prices and skyrocketing mortgage rates have reduced the demand for homes for many potential buyers. This year, pending sales in the U.S. have fallen to a record low since the pandemic began, and mortgage applications are down more than 50 percent. 

Citigroup, a U.S. retail bank, originated 15 percent fewer mortgages in the first six months than it did a year ago. They amounted to $7.2 billion. The company took the difficult step after JPMorgan Chase & Co. laid off hundreds of home-loan officers and moved several hundred others to other positions within the bank. Another bank, Wells Fargo & Co. raised the issue of job cuts to shrink its mortgage empire.

Citigroup employs more than 230,000 people worldwide. In an effort to expand its retail banking business in the U.S., the organization has hired mortgage specialists. Wells Fargo employee Darin Lugat recently joined the ranks and will be responsible for residential lending in the New York, New Jersey and northeastern suburbs markets. He will work under Liz Bryant, who leads retail mortgage sales. She also previously transferred from Wells Fargo.