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BofA to layoff 450 mortgage jobs

BBR Staff Writer Published 14 February 2014

Bank of America (BofA) is planning to axe approximately 450 jobs at its mortgage operations from West Coast offices, following an internal forecast of drop in new mortgage loans.

Two people with direct knowledge of the plans were quoted by the Bloomberg as saying that employees who process new home loans will be affected by the move.

The North Carolina-based lender, which has notified that affected staff will get support in finding new jobs, said that it will close two offices located in Concord and Pasadena.

Bank of America spokesman Dan Frahm was quoted by the news agency as saying, "These notifications have been ongoing and reflect our previously announced efforts to reduce our size, resolve legacy issues and simplify our company."

The firm cut about 3,000 employees involved in making home loans in the last three months of 2013 and 3,000 in the legacy-assets servicing unit, a person with knowledge of the plan said last year.

In October last year, BofA announced plans to eliminate 4000 employees at its mortgage banking division by December 2013, claiming that the division is facing sluggish demand of mortgage refinancing activities, amid growing interest rates.