Wells Fargo & Co. said Monday it will cut 145 employees from its wholesale mortgage lending division in Orange County.
All of the positions were temporary and most were based in the Irvine offices of the San Francisco-based banking giant, officials said.
“This is a very difficult decision,” said Wells spokeswoman Julie Green Rommel.
The wholesale division works with third party mortgage brokers after loans are originated and processed. Major responsibilities include underwriting, approving and closing loans.
Wells’ local wholesale lending division was expanded in the last 12 to 18 months to accommodate new business, but demand had waned recently, Green Rommel said.
“And even though interest rates are still favorable the demand is still slowing,” she said. “We expect to still have a significantly reduced mortgage market throughout 2011. As our business is constantly evolving, we need to make sure our team is aligned with the demands of the market and earnings expectations for the company.”
The cuts come in the wake of record quarter and year-end profits at Wells.
In the fourth quarter ending Dec. 31, Wells recorded net income of $3.4 billion, up 21% from a year earlier. For 2010, the bank topped $12.4 billion in net income.
In a conference call with analysts following the quarter and year-end filing, Wells Chief Executive John Stumpf said the company is “focusing on reducing expenses, being more efficient and nimble, and increasing revenue.”
Wells is the county’s No. 2 bank with $15.7 billion in local deposits, or 21% of the market, according to the latest Federal Deposit Insurance Corp. figures.
With 120 branches and offices, Wells has the most locations of any bank here.
Wells added 13 branches last year to its network after consolidating 25 former Wachovia branches. It acquired the North Carolina bank in a 2008 deal for about $15 billion as Wachovia struggled to survive under the weight of bad loans tied to real estate.
Analysts and Wells officials credit that acquisition and its continued benefits for the strong fourth quarter and year-end performance.
