Deposit amounts at Wells Fargo have slowed further in recent weeks, leaving some workers unemployed and raising concerns that the lender will have to cut more staff as the US housing crisis worsens.

The bank had about 18,000 loans in its retail origination pipeline in the first weeks of the fourth quarter, according to people familiar with the company’s figures. That’s down about 90% from a year earlier, when the pandemic-fueled housing boom was in full swing, said the people, who declined to be identified and spoke on internal matters.

The US housing market has been on a rollercoaster ride in recent years, starting in 2020 thanks to easy monetary policies and the adoption of telecommuting and slowing down this year when the Federal Reserve raised interest rates. Homebuyers were squeezed and the pace of refinancing slowed as borrowing costs rose to more than 7% for a 30-year loan from around 3% a year earlier. And interest rates could rise further as the Fed is expected to raise its benchmark interest rate again on Wednesday.

The situation has put pressure on the mortgage industry, especially companies such as Rocket Pant which thrived on loan refinancing and is expected to lead to consolidation among new non-bank players that rushed to serve customers after most US banks pulled out of the market.

Of the six largest US banks, Wells Fargo has historically been the most dependent on mortgage lending. But that began to change under CEO Charlie Scharf, who said the bank was looking to shrink the business and focus primarily on serving existing customers.

In October, the bank warned investors that the housing market could slow further after it said mortgage lending fell almost 60% in the third quarter.

“We expect this to remain challenging in the near term,” Chief Financial Officer Mike Santomassimo told analysts Oct. 14. “It is possible that we will have a further decrease in the revenue of the mortgage credit institutions in the fourth quarter, when startups are seasonally slower.”

Employees are nervous after the bank began laying off employees in April, and internal forecasts point to more departures. Local media reported when Wells Fargo offices were required to disclose impending cutbacks in a municipality.

The number of mortgage loan officers, who earn commissions primarily from closing deals, is expected to fall to less than 2,000 from more than 4,000 at the start of the year, according to one of the people. Many sellers have not closed a single loan in recent weeks, this person said.

Another person said most departures were voluntary as bankers sought other opportunities, making it difficult to predict departures and headcount.

“The changes we have recently made are the result of the broader interest rate environment and are consistent with the response of other industry lenders,” a Wells Fargo spokesman said in a statement. “We regularly review and adjust staffing levels to adapt to market conditions and the needs of our businesses.”

The bank said last month that its total workforce fell by about 14,000 people in the third quarter, down 6% to 239,209 employees.

Wells Fargo shares are down about 2% year-to-date.