SunTrust Banks (STI) has joined the lengthy list of major banks slashing jobs in their mortgage divisions.
The Atlanta-based company plans to cut 800 positions nationwide in response to diminished mortgage refinancing activity and overall market conditions, SunTrust spokesman Michael McCoy told The Atlanta Journal-Constitution Wednesday. The cuts will occur over the next several months, McCoy said.
Workers in Richmond, Va., and Charlotte, N.C., will be among those affected by the layoffs, according to reports in the Richmond Times-Dispatch and the Charlotte Observer. Calls to SunTrust seeking confirmation were not immediately returned.
Rising interest rates and dwindling refinancing activity have put a dent in many banks' mortgage operations in recent months, prompting layoffs at Bank of America (BAC), Wells Fargo (WFC), PNC Financial Services Group (PNC) and Citigroup (NYSE: C).
Last week, SunTrust announced plans to pay $1.5 billion to settle claims of flawed mortgage lending, servicing and foreclosure practices.