Bank of America (BAC) became the latest bank to announce major mortgage layoffs.
About 1,000 workers in Beachwood, Ohio, will lose their jobs on Oct. 31 when the Charlotte, N.C., company shutters its mortgage and consumer banking office, according to a report in the Cleveland Plain Dealer.
The company will also close home loan offices in Independence and Cincinnati, impacting 155 workers in total, the report said.
"We continue to reduce the size of our mortgage servicing operations in line with the successful reduction of our portfolio of delinquent mortgage customers," a Bank of America spokeswoman said in a statement. "Compared to peak levels in 2011, today we have fewer than one-third the numbers of customers who need the specialized programs and support of this team. These actions also reflect our ongoing efforts to streamline our facilities and align our cost structure with market realities, including declining refinance volume resulting from rising interest rates.
The bank said it would work to help employees identify other job opportunities.
Wells Fargo (WFC) and JPMorgan Chase (JPM) have also slashed mortgage jobs in recent months as banks see big declines in mortgage revenue. Demand for refinancing has plunged as interest rates rise, taking a toll on the mortgage business.