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Mortgage Market Forces Job Losses

The nation’s mortgage industry is being shaken by the increasing number of defaulting sub-prime mortgages. These types of mortgages are offered to consumers with below average credit ratings in a bid to help them get into a home. When they cannot afford mortgage payments, sub-prime borrowers are likely to default as has been seen much more glaringly over the past several months.

The entire mortgage industry is suffering and the reverberations are being felt and demonstrated in the laying off of more than 500 Wells Fargo employees. Citing a weak buying market, intense competition, and rising interest rates as being additional factors in the layoffs, Wells Fargo says that there lending business to people with good credit remains strong.

Despite the layoffs, as many as 150 employees could secure work with Wells Fargo at another San Francisco Bay area location.

Tags: employment, Mortgages, San Francisco, sub-prime mortgages, Wells Fargo