Bank of America (BofA) is planning to axe jobs of 202 employees in its legacy asset servicing division in Norfolk, Virginia, US.
The unit handles delinquent mortages. The layoffs are scheduled to be effective on March 29.
The unit reportedly hired 42,000 full-time workers across the company at its peak in 2012 as the bank dealt with over a million past-due mortgages.
The lender has slashed a third of these employees as it cuts down the number of delinquent loans through mortgage modifications, short sales, foreclosures and wholesale loan sales.
BofA senior vice president of communications Jumana Bauwens said, "This division was created in 2011 and staffing grew dramatically to support the short term needs of mortgage customers at risk of foreclosure. Now, we are in the process of returning to normal staffing levels."