More than 500 mortgage servicing employees are being laid off by JPMorgan Chase & Co. as it scales back staffing needs in light of the recent servicer settlement. The latest round of layoffs follows job cuts resulting from improved performance on its residential loans.
Last week, the New York-based firm disclosed that 300 employees had been laid off in South Carolina. In a written statement, a spokeswoman noted that as fewer borrowers fall behind on their mortgages, fewer employees are need to assist distressed borrowers.
Now, Chase is making even more cuts as a result of the $8.5 billion settlement announced last week between the nation’s biggest mortgage servicers and the Office of the Comptroller of the Currency.
The latest round of layoffs involves 529 servicing employees in Brooklyn, N.Y. The layoffs take effect on April 10.
The impacted employees handle independent foreclosure reviews, which — as a result of the OCC settlement — are no longer necessary.
The New York-based company previously reported a mortgage staff of 47,412 as of Sept. 30, 2012.
