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Layoffs deplete Citizens Bank’s home mortgage division
Bank did not confirm how many employees were let go
Another major mortgage lender is cutting staff.
Citizens Bank laid off about 20 mortgage brokers in the firm’s home mortgage division in New York City last Thursday, a source told The Real Deal.
The bank confirmed that layoffs occurred, but didn’t specify how many employees were let go or if the cuts went beyond New York, although that seems likely, as Citizens has locations in 14 states and Washington, D.C.
“We continuously assess staffing levels across the company to ensure they match appropriately with customer demand,” a Citizens Bank spokesperson said in a statement to TRD. “As part of that process, we have made some necessary but difficult decisions related to our home mortgage organization.”
Citizens Bank is one of the largest real estate lenders in New York. The bank doled out $1.11 billion across 1,768 property loans between July 2021 and July 2022, the ninth-largest amount in the city during that period, according to a TRD analysis.
The bank focused on the residential space, where it handed out roughly $1.06 billion across 1,690 loans during that 12-month period.
Citizens Bank’s layoffs come in the wake of numerous residential brokerages, mortgage firms and proptech companies reducing headcount in response to declining demand for home loans.
As mortgage rates rose at the end of last year to almost double their levels of the previous winter, homebuyers retrenched and mortgage activity cratered.
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Rocket Companies, the parent company of Rocket Mortgages, and United Wholesale Mortgage cut 9,500 roles combined last year. Rocket’s reduction of 7,500 employees accounted for 29 percent of its workforce, while United’s layoffs accounted for 25 percent.
New York Community Bank, a major lender to multifamily building owners, cut 10 percent of its staff in January and planned to close almost 70 percent of its home lending offices.
Citizens Bank’s stock, which closed Tuesday down 3.4 percent at $29.17 per share, is down more than 23 percent year-to-date and more than 30 percent over the past 12 months.