BofA Said to Cut 1,300 More Mortgage Unit Jobs Amid Slowdown

By Hugh Son - Oct 24, 2013

Bank of America Corp., the second-largest U.S. lender, is cutting about 1,300 more jobs in its mortgage division as the firm adjusts to lower demand, said two people with direct knowledge of the plans.

Affected employees were told yesterday about the cuts, which mostly involve the Charlotte, North Carolina-based firm’s home-loan fulfillment workers, said the people, who asked for anonymity because the changes are private. Those losing jobs will receive pay through Dec. 22 and are eligible for severance packages after that, said the people.

The latest round of reductions means Bank of America will dismiss about 3,000 people involved in making home loans in the fourth quarter. In August, the company had notified its staff of about 2,100 eliminations by the end of this month, mostly in areas processing new home loans. Mortgage lenders are paring headcount as higher interest rates discourage the refinancings they relied on to fuel profits.

--clip
Demand Drops

During an earnings conference call last week, Bank of America executives warned that the job eliminations would continue. Pending mortgages at the end of the third quarter dropped 60 percent from the second quarter, indicating a steep drop in demand, Chief Financial Officer Bruce Thompson told analysts on Oct. 16.

more...

http://www.bloomberg.com/news/2013-10-24/bofa-said-to-cut-1-300-more-mortgage-unit-jobs-amid-slowdown-2-.html

Goes to figure you don't need mortgages when wall street speculators are laying down cash money...

[hr]
RELATED: Families Blocked by Investors From Buying U.S. Homes
Source: Bloomberg

Home purchases by institutional buyers reached a record high in September and all-cash buyers accounted for almost half of sales as investors responded to rising demand from renters.

http://www.democraticunderground.com/1014630319