USAA bank lays off another 130 workers
Mortgage group cuts reflect downswing in local housing market
USAA Federal Savings Bank has laid off another 130 employees in its mortgage group, a result of the slowing national housing market.
“In order to continue exceptional service to our members, we sometimes make hard business decisions to ensure we are adapting to our members’ needs and changes in the marketplace,” said spokesperson Brad Russell.
“Sometimes that means investing more heavily in growth areas and scaling back or stopping work in others. In cases where employees are impacted, we treat them with care and dignity — and we often find positions for them elsewhere at USAA,” he added.
The employees who lost their jobs recently represent about 1.6 percent of the San Antonio bank’s total workforce.
USAA Bank is offering benefits and services to them, including a paid transition period and career workshops. Those who are eligible are also encourage to apply for other open positions.
The bank issued pink slips to more than 90 employees in its mortgage division in March. Then, in August, it cut an unspecified number of jobs across various departments.
The total of real estate loans on the bank’s books have dropped precipitously in recent years. It reported nearly $3.1 billion in real estate loans at the end of last year, less than half of the $6.3 billion it had at the end of 2019.
USAA Bank is not alone. Amid tight inventory, rising prices and higher mortgage rates, many lenders have been pulling back as buyers stay on the sidelines. Rocket, Wells Fargo and Better.com are among the companies that have also laid off employees in recent months.
Mortgage applications for home purchases during the week ended Jan. 27 slumped 10 percent from a week earlier and
By Madison Iszler and Patrick Danner STAFF WRITERS
41 percent from a year earlier, according to a survey by the Mortgage Bankers Association.
Applications to refinance dipped 6 percent from the previous week and were down 80 percent year-over-year.
“Overall application activity declined last week despite lower rates, which is an indication of the still volatile time of the year for housing activity,” said Joel Kan, MBA’S vice president and deputy chief economist.
“Purchase activity is expected to pick up as the spring homebuying season gets underway, bolstered by lower rates and moderating home-price growth. Both trends will help some buyers regain purchasing power,” Kan added.
Mortgage rates slipped slightly during the week ended Thursday but are still far higher than a year ago.
The average rate on a 30-year fixed-rate mortgage was 6.09 percent, down from 6.13 percent a weekly earlier but up from 3.55 percent a year earlier, according to Freddie Mac.