Chase laying off hundreds in its mortgage services unit

JPMorgan Chase is laying off a combined 400 or so employees in the Phoenix area and three other cities, with an undisclosed impact in the Valley.

The layoffs account for about 2 percent of the people in Chase’s mortgageservicing group, the Wall Street Journal reported. Also affected are Chase operations in Ohio and Florida.

In a reply to The Arizona Republic, the company called the reductions an adjustment that reflects declining loan delinquencies. A spokeswoman didn’t provide an estimate of layoffs in the Valley.

“When fewer people are struggling with their mortgages, and more people are using self-service channels, we can adjust staffing,” Chase said in its statement. “Like all companies, we are making improvements to operate more efficiently and make slight adjustments to resources to best meet the needs of the market.”

Chase said delinquencies have dropped 22 percent from last year and represent just 2 percent of all loans.

Chase has more than 10,000 workers in Arizona, with mortgage operations in Phoenix and Tempe.

Along with declining delinquencies, an uptick in interest rates has slowed the mortgage business. For example, the Mortgage Bankers Association said loan applications for new-home purchases slipped 4.6 percent in August compared to August 2017.