HSBC ceases using US mortgage brokers: cuts jobs

HSBC Holdings will be shedding 325 jobs in the US as it stops third-party brokers offering mortgages on behalf of the bank.

According to spokeswoman Kate Durman, HSBC mortgages will cut 20 percent or 225 jobs at its Depew New York based office as well as axing100 account executives positions with brokers nationwide.

In the third quarter this year house prices dropped in 80 percent of all United Stated cities causing HSBC to pull back some types of mortgages, added to the fact that US average house price fell 9 percent from last year according to the National Association of Realtors.

Citigroup downsized its workforce in mortgage operations from 9,500 to 1,000 last month. HSBC have said they will be concentrating on making loans directly to consumers using its 460 branches in the US.

Source: Iht