JPMorgan Chase is cutting about 400 jobs in its consumer mortgage banking division as parts of the mortgage market slow down.
The bank employs about 34,000 mortgage banking professionals, making it one of the nation’s largest mortgage lender. Citing people familiar with the matter, The Wall Street Journal reported that JPMorgan will cut mortgage employees in cities including Jacksonville, Fla., Columbus, Ohio, Phoenix, and Cleveland. The cuts come as mortgage servicing business has ebbed.
Rising mortgage rates and a lack of inventory have resulted in slowing home sales this year. Increasing prices and a new tax law that reduces incentives for homeownership have also been a drag on sales, according to WSJ.
JPMorgan isn’t the only megabank to slash mortgage jobs this year. In August, Wells Fargo announced that it would cut about 650 mortgage jobs.