Bank of America Corp. is cutting 1,500 mortgage positions nationwide, mostly in processing and underwriting roles.
The Charlotte, N.C.-based bank is also shifting 350 employees from its home loans unit to its legacy asset servicing division, which works with distressed borrowers.
The move reflects a 25% drop in mortgage applications so far this year compared to last year, according to spokesperson Dan Frahm.
Wells Fargo & Co. recently said it was eliminating 1,900 jobs nationwide, also related to a decline in mortgage loan demand (
Nationwide, Bank of America is closing about half of 200 smaller processing centers. Overall, it has thousands of facilities across the country. The cuts equal less than 1% of the company’s nearly 287,00 employees.
The bank is wrestling with mortgage losses largely inherited from its 2008 Countrywide Financial Corp. purchase. It was among the servicers that signed agreements last week with federal banking regulators requiring improvements to foreclosure and loan modification processes.
Bank of America CEO Brian Moynihan, in a speech last week, said many customers who have received modifications are defaulting again, leading to more foreclosures.
