Bank Of America May Cut 2,100 Mortgage Jobs

Posted by Patrick Barnard on September 10, 2013 No Comments
Categories : Residential Mortgage

Bank of America Corp. is reportedly cutting 2,100 jobs and closing 16 mortgage offices as origination volume declines on rising interest rates.

Of the 2,100 positions to be eliminated, about 1,500 are on the origination side, according to a Bloomberg News report, citing anonymous sources. About another 400 work in a suburban Cleveland call center, and 200 handle delinquencies. About 1,000 of the jobs to be cut are in suburban Cleveland.

Workers were notified of the layoffs on Aug. 29, and the reductions are to be completed by Oct. 31, according to Bloomberg News' source.

Bank of America's pending application volume dropped 5% at the end of June from the previous quarter, according to the report.

Meanwhile, Wells Fargo & Co. is planning to eliminate 2,300 more jobs, while JPMorgan Chase & Co. may lay off as many as 15,000 workers by the end of 2014.

In a Wall Street Journal report, Wells Fargo Chief Financial Officer Tim Sloan said the bank is forecasting a decline in mortgage originations in the third quarter. He said the bank expects about $80 billion in third-quarter mortgage originations, compared to $112 billion in the second quarter.

Wells Fargo has eliminated about 3,000 positions since July.

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