Just a week after Wells Fargo announced it was cutting deep into its mortgage fulfillment division comes the news that Bank of America is doing it, too.
The Charlotte bank announced more than 1,000 job cuts in Ohio as it closes several mortgage and consumer banking offices, the Cleveland Plain Dealer reported. The majority of the positions were working with refinances in the mortgage fulfillment division.
Big banks had staffed up those operations rapidly over the past two years as historically low interest rates had brought a torrent of refinance applications. As mortgage rates have climbed in the last few months, the banks have been scaling the business back.
Wells Fargo announced 284 layoffs in Charlotte last week, part of more than 2,300 job cuts in fulfillment around the country.
Bank of America said the cuts were centered in Ohio, with much less impact elsewhere. Four positions in North Carolina were affected, spokeswoman Jumana Bauwens said by email.
The bank said the job cuts are part of the bank’s larger efforts to streamline the company. The bank also has been trimming back the number of workers dealing with delinquent mortgages. “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,” the bank’s statement said.
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