BofA Will Slash 2,100 Mortgage Servicing Jobs and 2 Other Hot Stocks to Watch
Bank of America Corp. (NYSE:BAC): Current price $14.66
Higher interest rates are causing a drop in the demand for mortgages and Charlotte-based Bank of America is responding by to eliminating 2,100 jobs spanning its mortgage service segment, together with the closing of 16 offices by October 31. Word of this was per Bloomberg, further confirmed by knowledgeable internal sources.
BofA had made good use of the low interest rates during the financial crisis and the first phases of economic recovery, boosting their mortgage refinancing business — but recoveries invariably lead to rates going up, and here we have the situation as it now stands. Peer banks, which resorted to job cuts to stem further losses in their mortgage units, include Wells Fargo & Co. and JPMorgan Chase & Co.