Citi Cutting 1,000 Jobs as Mortgage Business Slows

[OhioChick]

Source: AP

NEW YORK September 24, 2013 (AP)

Citigroup says it is slashing about 1,000 jobs in Nevada and Texas, citing decreased demand for home loans and mortgage refinancing.

The lender said Monday that about 760 of the jobs being eliminated are in Las Vegas, while another 100 are in Irving, Texas.

The rest involve employees who work from home.

Most of the employees being laid off will continue to work until Nov. 22, while some will stay on until March.

Rising interest rates this summer have cut sharply into demand for mortgage refinancing, a big driver of bank profits in recent years.

Read more: http://abcnews.go.com/Business/wireStory/citi-cutting-1000-jobs-mortgage-business-slows-20351368

[DrDan]

1. this really does not make sense

the worst of the home crisis is behind us - spanning the past few years.

Home sales are picking up.

So - they survived to worst of it and decide to eliminate jobs now as home sales are taking off?

There has to be more to this story.

[magical thyme]

2. per the article, refinancing is dropping

and was a major part of the business. With interest rates past their bottom, everybody who was going to refinance from higher rates to lower ones has already done so.