Earlier in February, the Charlotte-based bank announced it would be laying off more than 200 employees
from its legacy mortgage servicing operations in its Norkfolk, Virginia, office and 53 mortgage-servicing employees will also lose their jobs in the Nassau County, N.Y., office. It was also reported that 250 mortgage-servicing jobs would also be lost in Charlotte.
BofA is coming to the end of a years-long process to resolve delinquent mortgage through government-backed modifications, in-house refinancing or short sales and foreclosures, according to the Charlotte Business Journal
. For years, staffing was increased to handle the overload of delinquent mortgages that were caused by the recession. However, now the wave of past due mortgages has subsided.
In the latest earnings report, BofA reported that quarterly operating businesses in the past-due mortgage business have declined to $1.1 billion from $1.8 billion. The number of home loans
60 days past due was reduced to 189,000 from 325,000 a year ago. Also, employees in the mortgage division dropped to 17,100 from 28,2800 at the end of 2013. At its peak, more than 55,000 employees handled BofA’s defaulted mortgages, according to The Charlotte Business Journal.
"In key Bank of America employment centers like Texas, we have the advantage of numerous areas of our business represented. So, while one business may experience a reduction in the size of its team, other areas are growing," bank spokesman Mark Pipitone told the Charlotte Business Journal
While the layoffs were just recently announced, they will take place for Texas and New York in April and May.
Bank of America Corp. announced more plans this week to cut an additional 116 mortgage-related jobs in the Dallas area, bringing the layoff total to 177 lost jobs.