Bank of America to cut 3,000 mortgage jobs - Local news, weather, sports Savannah | WSAV On Your Side

Bank of America to cut 3,000 mortgage jobs

Posted: Updated:
Bank of America will cut roughly 3,000 jobs by the end of the year as the number of refinancing applications and troubled loans has fallen. Bank of America will cut roughly 3,000 jobs by the end of the year as the number of refinancing applications and troubled loans has fallen.
CHARLOTTE, N.C. -

Bank of America is cutting about 4,200 jobs as it responds to changes in the housing market, echoing moves by other banks.

The country's second-largest bank laid off 1,200 employees this week, primarily from a unit that handles mortgage origination, company spokesman Terry Francisco said. He said the move is a response to a "significant" drop in refinancing applications that has been happening since the middle of this year.

By the end of the year, Bank of America plans to cut another 3,000 jobs. The bulk of those will be in its unit that handles troubled mortgages, such as foreclosures or loan modifications, as the economic recovery has eased the number of borrowers in distress. Francisco said many of the cuts affect contractors who were hired during peak demand. The bank declined to specify where in the country the job cuts would take place.

The company has been cutting jobs since CEO Brian Moynihan took over in early 2010 as part of a broader strategy to make the bank easier to manage and to reduce exposure to riskier businesses.

Its total full-time employee base has shrunk to 247,943 full-time employees as of the end of its most recent quarter, down 9 percent from 272,594 at the same time last year. This includes a number of recent reductions in the same distressed borrower unit that faces cuts just ahead.

The banking job cuts go well beyond Banks of America.

The economic recovery has lessened the number of troubled mortgages nationwide. Meanwhile, the improved economy and lower interest rates boosted demand for this spring and summer's home buying season. But that activity, along with refinancing, is slowing as interest rates rise.

A number of lenders have slashed jobs in response to the changing market.

Wells Fargo said last month that it would cut 1,800 mortgage related positions after cutting about 2,300 jobs from the same unit in August. Citigroup said in September that it is slashing about 1,000 jobs in Nevada and Texas, citing decreased demand for home loans and mortgage refinancing. And SunTrust Banks Inc. said last week it will cut 800 positions in its mortgage business based on current market conditions

Shares of Bank of America Corp., based in Charlotte, N.C., slipped 4 cents to close at $14.17 amid a broader market uptick.

  • North Carolina NewsMore>>

  • Man taken into custody after chase, standoff on I-77

    Man taken into custody after chase, standoff on I-77

    Thursday, July 31 2014 9:16 PM EDT2014-08-01 01:16:12 GMT
    The standoff began after James Call stole a dump truck from Alexander County. Call then drove to Iredell County and robbed someone at gunpoint before leading deputies on a chase down I-77.
    The standoff began after James Call stole a dump truck from Alexander County. Call then drove to Iredell County and robbed someone at gunpoint before leading deputies on a chase down I-77.
  • NC Senate gives tentative OK to state budget

    NC Senate gives tentative OK to state budget

    Thursday, July 31 2014 9:11 PM EDT2014-08-01 01:11:41 GMT
    File PhotoFile Photo
    The new state budget provides more money for kindergarten through college classrooms, raises for public school teachers and a boost for vouchers for children attending private and religious schools.
    The new state budget provides more money for kindergarten through college classrooms, raises for public school teachers and a boost for vouchers for children attending private and religious schools.
  • Deal still not reached on NC coal ash bill

    Deal still not reached on NC coal ash bill

    Thursday, July 31 2014 9:10 PM EDT2014-08-01 01:10:12 GMT
    Lawmakers say they have still not reached agreement on legislation requiring Duke Energy to limit pollution leaking from its coal ash dumps across the state.
    Lawmakers say they have still not reached agreement on legislation requiring Duke Energy to limit pollution leaking from its coal ash dumps across the state.
  • Most Popular StoriesMost Popular StoriesMore>>

  • Screams, panic caught on video as shark charges at swimmers near beach

    Screams, panic caught on video as shark charges at swimmers near beach

    Wednesday, July 30 2014 5:48 PM EDT2014-07-30 21:48:04 GMT
    Facebook image from Dan FlynnFacebook image from Dan Flynn
    A Florida beach cleared out – with the exception of a woman and lifeguard who tried to save her – when a shark was spotted heading straight toward swimmers on Tuesday afternoon. The panic of the 10-foot shark and people screaming from the pier was caught on tape.
    A Florida beach cleared out – with the exception of a woman and lifeguard who tried to save her – when a shark was spotted heading straight toward swimmers on Tuesday afternoon. The panic of the 10-foot shark and people screaming from the pier was caught on tape.
  • Teen accused of torturing tortoise faces sex charges

    Teen accused of torturing tortoise faces sex charges

    Thursday, July 31 2014 4:21 PM EDT2014-07-31 20:21:00 GMT
    Greene's mug. Image Clay County Sheriff's Office/FCNGreene's mug. Image Clay County Sheriff's Office/FCN
    The teen accused of setting a protected tortoise on fire and killing it also faces sex charges after an encounter with a boy, NBC affiliate First Coast News reported Wednesday.
    The teen accused of setting a protected tortoise on fire and killing it also faces sex charges after an encounter with a boy, NBC affiliate First Coast News reported Wednesday.
  • VIDEO: A Look at the SpongeBob Squarepants Movie Trailer

    VIDEO: A Look at the SpongeBob Squarepants Movie Trailer

    Thursday, July 31 2014 1:20 PM EDT2014-07-31 17:20:02 GMT
    This is a look at the trailer for the new SpongeBob Squarepants movie.Many of the scenes were filmed on Tybee Beach and in downtown Savannah.
    This is a look at the trailer for the new SpongeBob Squarepants movie.Many of the scenes were filmed on Tybee Beach and in downtown Savannah.
Powered by WorldNow

1430 East Victory Drive
Savannah, GA 31404

Telephone: 912.651.0300
Fax: 912.651.0320
Email: newsemailalert@wsav.com

Can't find something?
Powered by WorldNow
All content © Copyright 2000 - 2014 Media General Communications Holdings, LLC. A Media General Company.