Bank of America Corp. reported it plans to cut up to 4,000 mortgage jobs as fewer borrowers refinance, and fewer home loans go bad.
Mortgage lending volume at Bank of America was down 11% in the third quarter from the second quarter. The number of applications the bank had received but not yet processed was down 60% in the end of September from the end of June.
Bank of America expects to make fewer home loans in the fourth quarter and likely will cut more mortgage jobs, CEO Brian Moynihan said during a recent quarterly conference call with analysts. Finance chief Bruce Thompson said on that call that the job reductions were largely in the unit that collects payments on home loans, the unit that makes new home loans and in many of the bank's branches.
The job cuts at the bank follow another round of layoffs - in the third quarter, the second-largest U.S. bank eliminated more than 9,000 full-time positions, or 3.6% of its total staff.
Mortgage loans at the bank that were delinquent by more than 60 days fell by 94,000 to 398,000 in the third quarter. The bank expects a further decline to below 375,000 by the end of 2013.