Wave of mortgage job cuts continues

by Ryan Smith10 Sep 2013

The nation’s second-largest lender is cutting more than 2,000 jobs and closing 16 mortgage offices in the face of rising interest rates and flagging demand for loans, according to a Bloomberg report.

Citing anonymous sources, Bloomberg reported Monday that Bank of America will pink-slip about 2,100 employees. The layoffs should be completed by Oct. 31, according to Bloomberg.

Bloomberg’s sources reported that about 1,500 of the affected employees help process home loans, while another 400 work in an Ohio call center and a further 200 deal with overdue mortgages.

The bank is also scaling back operations in its Countrywide Financial unit as it shutters 16 offices, according to Bloomberg. Countrywide, which was acquired by Bank of America in the aftermath of the financial meltdown, has been blamed by federal regulators for quality control issues that led to thousands of defective mortgages being sold to Fannie Mae and Freddie Mac. The company has cost BOA billions since the bank acquired it, and legal battles involving Countrywide are still ongoing.

The planned closings will leave about 25 mortgage offices still operating, according to Bloomberg. The largest office reported to be on the chopping block is in Cleveland and is home to about 1,000 employees.

COMMENTS

  • by Bayview Mortgage Inc. | 9/15/2013 6:35:34 PM

    Well, if they can't sell to Fannie. then their Lending business is pretty much in the gutter anyway. they don't need all those originators when they are only dealing with very, very good borrowers and their own cash. They are probably sticking to credit cards with 39% interest rates. Its almost as good as pawn shops and title mortgages in income production. The CFPB should require the lenders to hold credit cards as a % of all mortgages and not top heavy in cards. and treat that % rate, weight in the mix.

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