Bank of America - found liable earlier this week for defrauding Fannie Mae and Freddie Mac - has announced that it will cut about 3,000 mortgage jobs in the fourth quarter
Bank of America just can’t catch a break. Earlier this week, the bank was found liable for defrauding Fannie Mae and Freddie Mac with shoddy mortgages sold through its Countrywide unit. Now it’s announced that it will cut about 3,000 mortgage jobs in the fourth quarter.
The lender is making the cuts in response to a shrinking demand for refinancing, according to a MarketWatch report. The cuts will likely affect operations in California, Texas and Florida. About 1,300 of the affected employees have been notified so far, according to MarketWatch. Bank of America has already cut about 2,100 mortgage employees so far this year.
Mortgage units at big banks across the nation have taken hits over the last few months as rising interest rates strangled refi demand. Last month, Citigroup announced the layoffs of about 1,000 employees in its mortgage division. Wells Fargo & Co., the nation’s largest mortgage lender, has eliminated more than 4,000 mortgage jobs over the last few months. JPMorgan has announced plans to eliminate about 19,000 positions – about 15,000 in its mortgage unit – over the next two years.
