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Friday, Aug 30
Mortgage slowdown to cost 1K Bank of America workers their jobs
- The move in BofA's (BAC -0.3%) Beachwood, Ohio office comes as the mortgage refinance boom goes into reverse, and as the bank continues with its focus on cutting costs (aiming at 30K job cuts total, $8B in savings annually by 2015).
- Refinances nationwide made up 70-75% of home loans last year and have dropped to 60-65% this year, according to Freddie Mac. They're expected to fall to less than 50% next year.
- Most of those being fired worked in mortgage refinancing, while the rest are in customer service for consumer banking.
- Bank of America employs around 170K.