Thousands of mortgage staffing cuts are planned this year and next year by JPMorgan Chase & Co. The company has already disclosed the elimination of more than a thousand mortgage jobs this year.
Chase previously reported that it employed 47,412 people in mortgage lending as of Sept. 30, 2012.
The financial services giant says that its current mortgage staff includes 4,700 “mortgage bankers.” Its mortgage banking sales force increased by 900 in 2012.
But a projection made Tuesday in a presentation by Gordon Smith, chief executive officer consumer & community banking, at Chase’s investor day event in New York indicated that severe job cuts are ahead in the mortgage unit.
According to the presentation, the New York-based company will reduce its mortgage headcount by between 13,000 and 15,000 people. The reduction is expected to be completed by the end of 2014.
Chase expects to reduce its annual expense by $3 billion as a result of the staff reduction.
So far this year, the banking behemoth has disclosed the layoffs of 529 New York employees, 300 South Carolina employees and 121 Texas employees. All of those job cuts were the result of a settlement last month with the Comptroller of the Currency and the Federal Reserve that resolved the foreclosure review requirements of consent orders issued in April 2011.
In addition, Chase this month sold a mortgage servicing office in Melbourne, Fla., to Wingspan Portfolio Advisors in a move that will reduce its headcount there by at least 400 positions.
