Another large lender has announced mortgage division layoffs as rates eat into refinancing.
Bank of America will lay off 1,000 workers in its Beachwood, Ohio offices, The Cleveland Plain Dealer has reported. The layoffs will take effect October 31, with most of the affected employees working in refinance, many related to the government's Home Affordable Refinance Program.
Bank of America spokesman Terry Francisco told the Plain Dealer rising rates had slowed refinancing activity, meaning the bank has continued to wind back its mortgage operations.
"Compared to peak levels in 2011, today we have fewer than one-third the number of customers who need the specialized programs and support of this team. These actions also reflect our ongoing efforts to streamline our facilities and align our cost structure with market realities," Francisco said.