Bank of America (BofA) is to cut around 4,000 jobs in its mortgage division by the end of 2013 to realign its cost structure amid lower customer demand for mortgage refinancing.
Under the plan, the company has already notified 1,200 employees about the job cuts mostly from home-loan fulfilment division, which processes new mortgages.
The bank is further planning to shed another 2,800 jobs in the division, taking its total count to 4,000 by the end of 2013.
BofA spokesman Dan Frahm said the bank was working with affected employees to identify opportunities both inside and outside the bank.
In the third quarter, the lender’s delinquent mortgage loans fell by 94,000 to 398,000 and is further expected to fall to 375,000 by the end of 2013.
Compared to the second quarter, the mortgage lending volume at the bank were down by 11% in Q3.
BofA spokeswoman Jumana Bauwens said as the bank continues to resolve the needs of customers with delinquent loans, it will reduce the size of the operations that support these specialised programmes.