Major lender axes mortgage jobs

by Ryan Smith14 Feb 2014
Bank of America is once again axing mortgage jobs, according to a Bloomberg report.

Citing anonymous sources, Bloomberg reported that the lender is cutting 450 mortgage positions at West Coast offices after new loan numbers failed to meet projections. One office in Pasadena, Calif., will be closed entirely, Bloomberg reported. Affected employees will receive two months’ salary as severance, according to Bloomberg.

The layoffs mark the fourth time in a year that Bank of America has slashed staff as rising rates push demand for home loans lower. Bank of America’s retail originations dropped 49% to $11.6bn in the fourth quarter of 2013, according to Bloomberg.

Bank of America isn’t alone in slashing mortgage jobs. Other lenders, including Wells Fargo and JPMorgan Chase, have cut thousands of positions in their mortgage units in the last 12 months as the refi boom evaporated. Bank of America itself cut about 3,000 mortgage employees in the last quarter of 2013.

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