Thursday, October 24, 2013

Bank of America to cut 3,000 jobs

Bank of America Corp. is planning to cut 3,000 mortgage jobs in the fourth quarter, The Wall Street Journal reported Thursday.

Bank officials could not be immediately reached for comment.

According to the newspaper, which cites people familiar with the matter, the cuts come as the Charlotte-based bank seeks to reduce expenses amid a drop in home-loan refinancing activity and its delinquent loan portfolio. Bank of America, like other banks, are seeing lower demand from consumers to refinance loans as mortgage rates rise.

The newspaper, quoting a person familiar with the matter, said the bank on Thursday notified about 1,200 employees in its legacy mortgage group and its home loans fulfillment unit that they will be let go. Bank of America is also planning to cut 3,000 jobs in its legacy asset servicing group. The group manages the bank’s mortgage portfolio, servicing current and delinquent loans, the newspaper said.

The fourth-quarter cuts include full-time employees and contractors who handled delinquent loans that Bank of America inherited when it bought Countrywide Financial Corp. in 2008. According to the newspaper, most of the jobs cuts will affect temporary contracting companies.

The cuts are expected to impact California, Texas and Florida. It was not immediately clear if Charlotte will be affected.

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