BofA Said to Cut 450 More Mortgage Jobs as Loan Demand Declines

Feb 13, 2014 3:37 pm ET

Feb. 13 (Bloomberg) -- Bank of America Corp., the second- largest U.S. lender, is cutting 450 mortgage jobs from West Coast offices after new loans fell short of internal forecasts, said two people with direct knowledge of the plans.

Affected employees were told yesterday about the eliminations, which involve workers who process new home loans, said the people, who asked for anonymity because the dismissals are private. California offices that will lose workers include one in Concord, and another in Pasadena that will be shut entirely, said the people.

Bank of America’s latest round of cuts is at least the fourth time in a year that the lender trimmed personnel because of falling loan originations. Rivals including JPMorgan Chase & Co. and Wells Fargo & Inc. are dismissing people as higher interest rates discourage the refinancings that banks relied on to fuel profits.

“These notifications have been ongoing and reflect our previously announced efforts to reduce our size, resolve legacy issues and simplify our company,” said Dan Frahm, a spokesman for Bank of America. The company is still hiring workers in non- mortgage areas, and some employees will find positions in other parts of the firm, he said.

Previous dismissals by the Charlotte, North Carolina-based bank were announced in August, October and January, said one of the people. The firm cut about 3,000 employees involved in making home loans in the last three months of 2013 and 3,000 in the legacy-assets servicing unit, a person with knowledge of the plan said last year. Bank of America’s staff totaled about 242,000 as of Dec. 31.

--Editors: Rick Green, Dan Kraut