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Bank of America cutting more mortgage jobs

  • After new loans fell short of internal forecasts, Bank of America (BAC) is cutting 450 jobs from West Coast offices, reports Bloomberg. A bit of a switch - last year's series of mortgage job cuts were about the big slowdown in refinance business, but these cuts supposedly affect those who process new home loans.
  • In the bank's most recent quarterly report it disclosed Q4 originations of $11.6B fell 49% from a year earlier.
  • Perspective: The bank employs about 242K.
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Comments (20)
  • june1234
    , contributor
    Comments (2689) | Send Message
     
    Despite FHA FICO scores requirements being dropped by Wells Fargo from 640 to 600(subprime) mortgage apps( which 90% of people use to buy any home) remain at 15 yrs ago levels. You can't force people to apply in this housing recovery
    14 Feb, 09:34 AM Reply Like
  • Bouchart
    , contributor
    Comments (780) | Send Message
     
    Young folk with student loan debt and poor job prospects aren't going to go out and buy houses.
    14 Feb, 10:42 AM Reply Like
  • june1234
    , contributor
    Comments (2689) | Send Message
     
    You going to need more than young folk and poor job projects to make up 15 yrs of home buying
    14 Feb, 01:25 PM Reply Like
  • Agbug
    , contributor
    Comments (1132) | Send Message
     
    #Bouchart makes a good point.

     

    Also, from the web is this article on population growth and birth rates for 2013 - http://bit.ly/1cGjFIY
    "The U.S. population this year grew at its lowest rate since the Great Depression, according to the latest Census Bureau estimates Monday that suggest the sluggish economy continues to tamp down on immigration, and birth rates are still low for those already here."<p class="double"> <... last time I looked, Black single mothers were 73% of births, Whites at 50% or so and Hispanics quickly closing the gap. OTH, new construction of apartments seems to have done well lately.
    14 Feb, 07:36 PM Reply Like
  • june1234
    , contributor
    Comments (2689) | Send Message
     
    Neither are the 300K +who keep losing their jobs in this country week after week that could change with 600 credit scores though
    15 Feb, 04:53 AM Reply Like
  • benitus
    , contributor
    Comments (1962) | Send Message
     
    Just some good house-keeping. Nothing to be concerned about. Be Cool, people.
    14 Feb, 09:58 AM Reply Like
  • quabbin
    , contributor
    Comments (127) | Send Message
     
    Much more than that, benitus.
    You're being naive.
    14 Feb, 06:07 PM Reply Like
  • benitus
    , contributor
    Comments (1962) | Send Message
     
    quabbin, ..... you make yourself sound stupid when you say that I'm being naïve. Everyone is entitled to their opinion on a public forum and you don't have to be rude if you don't like what I said. It seems that you're so full of yourself when you put yourself above another person. Have a wonderful life.
    14 Feb, 08:12 PM Reply Like
  • minecanary
    , contributor
    Comments (485) | Send Message
     
    On a brighter note, the banks legal team was strengthened by 500 to an even 30K
    14 Feb, 10:05 AM Reply Like
  • gwynfryn
    , contributor
    Comments (4348) | Send Message
     
    Great; that's cheered me up no end! How many more jobs can they cut without becoming dysfunctional?
    14 Feb, 11:01 AM Reply Like
  • benitus
    , contributor
    Comments (1962) | Send Message
     
    Don't get your tail up, gwyn. Inconsequential improvements to its overall position. Trimming the fat to make it lean and mean. That's what they had been doing for the past year, which can only mean higher profits next quarter and hopefully, some dividends.
    14 Feb, 11:08 AM Reply Like
  • minecanary
    , contributor
    Comments (485) | Send Message
     
    But Barclay's make them look like slackers. You have to can 12-15K peons and jack up the bonus pool for the chiefs in order to show your serious.
    14 Feb, 12:53 PM Reply Like
  • Summer Sea
    , contributor
    Comments (92) | Send Message
     
    This market is an investors conundrum. Baby boomers out here trying to invest. Bank of America is a perfect example of a gradual financial improvement creeping backwards. Looks like Wells Fargo is loaning like the sub prime old days. Who is putting the brakes on these banks? If boomers can't re-coop enough of their gargantuan loses though investment, ...then what? Scary??
    14 Feb, 01:36 PM Reply Like
  • june1234
    , contributor
    Comments (2689) | Send Message
     
    The same people who always do , their business partner the government. those new 600 FHA credit scores should do wonders for underwriters. Pretty sure I've seen that movie before.
    14 Feb, 02:58 PM Reply Like
  • convoluted
    , contributor
    Comments (1968) | Send Message
     
    I spoke with a Florida real estate agent recently, and he related that a lot of young couples were looking for homes. The concept or 'dream' of 'owning' one's home is still intact, at least among a section of younger people. But, of course, that conversation is hardly statistically relevant. Nonetheless (or nevertheless-can't recall grammar this morning)-it's encouraging that some are motivated and try their best, despite the economic headwinds.
    I trade several financial stocks and ETFs, so I'm ambivalent as to the stock price. I am bullish on young people that work hard and give it their best shot.
    15 Feb, 08:28 AM Reply Like
  • gwynfryn
    , contributor
    Comments (4348) | Send Message
     
    As you say; not statistically relevant. Whatever the state of the economy, there are always some people who have plenty of money; according to a graph I just saw, the comparative difference (I'm not sure how this was measured) between lowest and highest incomes in the US was put at 7.9:1 (twice that of Greece, but halve of Mexico's).
    15 Feb, 08:49 AM Reply Like
  • Moon Kil Woong
    , contributor
    Comments (11161) | Send Message
     
    Unless TBTF banks can dump to the gov programs or Federal Reserve they just don't loan to homebuyers besides the rich Jumbos. This means a few things 1) they still have way too many bad property loans they are sitting on 2) They are dinosaurs incapable of conducting proper banking without government support 3) Management has decided that they are better off getting rich off of givaways that conducting banking 4) They are leveraging themselves by gambling for themselves than loaning out money. This destroys the regular mechanisms of capitalism and the velocity of money. Especially when it is used to bet against their own clients.
    16 Feb, 12:00 AM Reply Like
  • miross
    , contributor
    Comments (18) | Send Message
     
    It isn't that BofA isn't getting apps; they don't want to lend. We are 780+FICO, 50%LTV and DTI of 50% (jumbo refi). On top of it, their underwriters are seriously challenged in understanding tax returns that don't fit into a W-2 standard deduction format.
    16 Feb, 11:04 AM Reply Like
  • swimstar492
    , contributor
    Comment (1) | Send Message
     
    They are cutting these jobs for a reason, because of the reduced amount of new loans, there is less money coming in to the company, and thus the bank is running low on cash. If a company is low on cash, they have no choice but to cut jobs. This is a sure sign to avoid doing business with this bank. Think about it: if a bank can't do full payroll for its current employees (before the cuts), would you put your money there?
    16 Feb, 09:29 PM Reply Like
  • benitus
    , contributor
    Comments (1962) | Send Message
     
    swimstar....I don't think that the savings from these 450 jobs would amount to much when compared to having 242K employees. I think, as I've said earlier, that it's a matter of trimming the fat and improving the company's image as well. It's not good business sense to tie down its funds on a dead sector, albeit temporarily, with nothing much to show for it. Live long and prosper.
    17 Feb, 06:35 AM Reply Like
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