The number of job cuts at Bank of America could reach 2,100 as the Charlotte bank trims its mortgage operations, according to a report from Bloomberg.
The cuts include the 1,000 layoffs announced at two locations in Ohio at the end of August. Mortgage offices in California, Virginia, Washington and Texas are also affected, Bloomberg reported.
No major layoffs were slated for North Carolina, though four employees in the state were let go, Bank of America said late last month. Bank of America did not immediately respond to requests for comment Monday on the new job cut figure.
The largest U.S. banks rapidly scaled up their mortgage operations over the past two years as record-low interest rates prompted millions of homeowners to refinance their mortgages.
Wells Fargo, for example, hired 10,000 new employees in its mortgage fulfillment division over a 21-month period, Chief Financial Officer Tim Sloan told investors Monday.
But since May, interest rates have shot up more than a full percentage point -- dramatically reducing refinance volume. Banks that grew to accommodate the demand are now working quickly to cut costs.
Wells Fargo has announced more than 3,000 job cuts in the past two months in that unit, Sloan said, including nearly 300 in Charlotte. JPMorgan Chase has said it will cut 15,000 jobs in its mortgage division.
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Original headline: Bank of America's mortgage cuts could reach 2,100 nationwide
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OCTOBER 30, 2014
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