In anticipation of a huge downturn in mortgage originations, Bank of America Corp.’s mortgage unit will close production offices and layoff more than a thousand employees. The layoffs are another huge blow to jobs in real estate finance.
More than 100 Bank of America Home Loans fulfillment centers will be shuttered, the company confirmed in a statement to Mortgage Daily.
Staffing at the remaining sites will additionally be reduced.
In all, more than 1,500 employees are expected to be affected by the move. The impacted jobs are primarily in loan processing and mortgage underwriting.
However, 300 employees will be re-deployed to BofA’s legacy asset servicing division — which was launched in February and run by Terry Laughlin. The positions will support loan modifications and foreclosure prevention.
“Others are encouraged to apply for open positions throughout Bank of America,” the statement said.
BofA blamed an expected 25 percent decline in industry originations this year for the decision to consolidate. Its own residential originations fell to $306.5 billion last year from $391.3 billion in 2009.
The layoffs at the Calabasas, Calif.-based unit follow nearly 2,500 first-quarter production-related layoffs announced by rival Wells Fargo & Co.
