Wells Fargo home mortgage downsizing could hurt Twin Cities

• The strategy shift follows new leadership and the bank's struggles to avoid costly regulatory probes and hits to the bank’s reputation, Bloomberg reports.

Why it matters: Wells Fargo Home Mortgage is a major corporate employer in the Twin Cities.

• Its South Minneapolis office — visible from I-35W — employed 3,800 people as of 2018. It later built a parking ramp to allow for 1,250 more employees.
• Wells Fargo also has suburban offices with an unspecified number of home mortgage employees.

The intrigue: Job cuts are already underway as home mortgage applications across the industry decrease amid higher interest rates and a cooling housing market. Those cuts will go deeper as Wells Fargo downsizes, Bloomberg reports.

What they're saying: Wells Fargo did not disclose how many job cuts have already occurred, or if any took place in the Twin Cities.

• "Like others in the industry, we’re evaluating the size of our mortgage business to adapt to a dramatically smaller originations market," spokesperson Tom Goyda told Axios in an email.