The nation’s banks have seen a sharp slowdown in profits from refinancing as mortgage rates rose from historic lows while the housing market healed.
By Andrew Tangel and E. Scott Reckard
October 24, 2013, 6:21 p.m.
NEW YORK — Bank of America Corp. is slashing 1,200 jobs in its mortgage division as the company’s refinancing business slows amid rising interest rates.
The Charlotte, N.C.-based bank made the cuts this week, a BofA representative said. The jobs are scattered around the country, including some in California, but the bank declined to elaborate.
The nation’s banks have experienced a sharp slowdown in once-booming profits from refinancing as mortgage rates rose from their historic lows while the housing market healed.
BofA is planning to cut about 3,000 more jobs by the end of this year, but they are mostly contractors in its legacy asset servicing division, the bank said.
While there has been a slowdown in mortgage refinancing, there has also been a drop in customers needing assistance with short sales or modifications. Delinquencies have also declined as borrowers’ ability to repay has improved along with the economy’s upswing.
Other major banks have been issuing pink slips to thousands of mortgage employees too.
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