Major banks laying off mortgage employees - NBC12.com - Richmond, VA News

Major banks laying off mortgage employees

Posted: Updated:
  • Business NewsBusiness NewsMore>>

  • Lawfirm offers free help with living wills

    Lawfirm offers free help with living wills

    Wednesday, April 16 2014 5:15 PM EDT2014-04-16 21:15:09 GMT
    Today is National Healthcare Decisions Day. It's a day to encourage you to decide what care you want if you have a medical emergency and can't speak for yourself. Who could forget the headline cases?More >>
    Wednesday is National Healthcare Decisions Day. It's a day to encourage you to decide what care you want if you have a medical emergency and can't speak for yourself.More >>
  • Workers opt for shared, flexible workspaces

    Workers opt for shared, flexible workspaces

    Friday, April 11 2014 4:59 PM EDT2014-04-11 20:59:30 GMT
    The days of spending your work day in an office cubicle are changing. As more people are telecommuting, working mobilely, or starting their own businesses, the traditional office space is evolving. BrandonMore >>
    The days of spending your work day in an office cubicle are changing. As more people are telecommuting, working mobilely, or starting their own businesses, the traditional office space is evolving. BrandonMore >>
  • Snag-a-job: Job hunters need to start looking now

    Snag-a-job: Job hunters need to start looking now

    Friday, April 4 2014 4:32 PM EDT2014-04-04 20:32:57 GMT
    A recent snag-a-job study reveals good news for those seeking summer employment. A survey of more than 250 companies, large and small, shows they are already hiring - and in some cases, wages have evenMore >>
    A recent snag-a-job study reveals good news for those seeking summer employment. A survey of more than 250 companies, large and small, shows they are already hiring - and in some cases, wages have even increased.More >>

Major banks are laying off thousands of employees who handle mortgages nationwide right now. Meantime, foreclosures just shot up in Richmond and Virginia.

Wells Fargo first cut 2300 mortgage employees nationwide, and will now cut 1800 more. Bank of America plans to close 16 mortgage offices. JP Morgan Chase is cutting up to 15,000 mortgage workers by next year. And Citigroup is cutting 1000 across the country.

So we asked Colonial First mortgage advisor Ron Waddell as an expert in the industry, "What's going on here?"

"In the last six months, mortgage rates have climbed about one percent for a 30-year mortgage," Waddell explained.

That's right, it's jumped from 3.35% in May to about 4.4% now. And the booming demand for refinancing is dropping off.

"We have seen a drop off, the industry has, in refinance applications," he told us.

So why did rates suddenly shoot up? The Federal Reserve announced it will start winding down its bond-buying stimulus program soon.

Meantime, RealtyTrac just reported that from August to September foreclosures are up in Richmond 21%, and up in Virginia 52%. Most experts blame the sequestration that started about six months ago.

But they don't expect the up tick to last. Overall in the third quarter, RealtyTrac reports that Richmond foreclosures are down 28% from the same time last year. And statewide they're down 24%.

Said Waddell, "I think the increase in foreclosures is indicative of the fact that we haven't fully recovered from the either the housing or the economic situation that started four years ago."

So, in a nutshell, what does all this mean for you?

Depending on the interest rate of your current mortgage, you may not want to refinance your home, now that interest rates are higher,

But for home buyers, mortgage rates overall are still historically low and a good deal.

The inventory of homes on the market is still low, which is good for home sellers, but analysts say the market still belongs to the buyer.

Copyright 2013 WWBT NBC12.  All rights reserved.

Powered by WorldNow