Wells Fargo & Company (WFC - Free Report) has laid off another 42 employees who worked in Frederick, MD as its mortgage business continues to witness a slowdown. The news was reported by Baltimore Business Journal.
On the matter, spokeswoman Christina Carmichael said, "As part of an overall reorganization of our distributed sales as well as our servicing and fulfillment teams, we are reducing 42 team members to better align with origination and servicing volume in the current environment."
She also noted that Wells Fargo does not plan to make another round of layoffs in Maryland. However, periodic evaluations and accordingly adjustments on the basis of client needs, market trends, economic factors and competition from peers will be made.
Previously, in June 2018, Wells Fargo had undertaken a mortgage job cut drive, whereby it had cut down more than 300 positions as a response to decline in origination volumes, since the mortgage market is being impacted by rising interest rates and declining supplies of homes for sale. The job cuts were witnessed in Fort Mill, SC; Charlotte, NC and some accounted to Maryland as well.
Notably, Wells Fargo's mortgage banking income declined 33% in the second quarter of 2018, on a year-over-year basis.
With a cap imposed on assets by the Federal Reserve and continuous involvement in legal hassles, Wells Fargo remains on a hard path to recovery. Its impressive full-year cost savings plan might help it deal with the pressure on financials. Also, in the second quarter, Wells Fargo launched its largest advertising campaign to rebuild lost image.
While the current crisis at Wells Fargo will take some time to alleviate, we believe the bank’s initiatives will support its growth profile, moving ahead.
Wells Fargo’s shares have declined 2.6% year to date against 2.7% growth recorded by the industry.
Currently, Wells Fargo carries a Zacks Rank #3 (Hold).
Stocks to Consider
BOK Financial Corporation (BOKF - Free Report) earnings estimates have been revised slightly upward in the last 60 days. Additionally, the stock has gained more than 20% in a year’s time. It currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Comerica Incorporated's (CMA - Free Report) current-year earnings estimates have been revised 5.2% upward over the last 60 days. Over the past year, the company’s share price has been up more than 40%. It currently carries a Zacks Rank of 1.
M&T Bank Corporation’s (MTB - Free Report) current-year earnings estimates have been revised 2.4% upward over the last 60 days. Additionally, the stock has jumped above 15% in the past 12 months. It also currently carries a Zacks Rank #2.
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