Bank Of America Lays Off 250 In Legacy Asset Servicing Division

Posted by Patrick Barnard on February 12, 2015 No Comments
Categories : Mortgage Servicing

Bank of America is reportedly laying off 250 workers at its servicing shop in Charlotte, N.C.

According to a report in the Charlotte Observer, the affected employees work in the bank's Legacy Asset Servicing division, which primarily services pre-crisis loans that Bank of America inherited when it acquired Countrywide Financial.

Bank of America laid off 540 employees in the division last June; however, 150 were able to stay on in short-term positions, according to the report. Those 150 positions are part of the 250 now being eliminated.

Some of the employees had been working in technology positions, according to the report. The bank continues to employ about 15,000 in Charlotte.

The cuts come as Bank of America continues to divest itself of the bulk of its mortgage servicing rights, in particular for troubled loans that were originated pre-crisis.

The Charlotte Observer report includes a chart showing that the number of employees in Bank of America's mortgage servicing division has dropped from about 28,000 in the fourth quarter of 2013 to about 16,000 in the fourth quarter of 2014.

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