Bank Of America Quits Wholesale Mortgage Business, To Result In Loss Of 700 Jobs
|October 29, 2007|
Bank of America Corp (NYSE: BAC) has said that it will stop offering home mortgages through brokers by the end of the year, resulting in a loss of 700 jobs, so that it may focus on lending directly to consumers.
Other mortgage lenders have this year also reduced their reliance on brokers, including Wells Fargo & Co. (NYSE: WFC), Washington Mutual Inc. (NYSE: WM) and Wachovia Corp (NYSE: WB).
The job cuts are part of the 3,000 that the bank disclosed on Wednesday, after a poor quarter in investment banking led to a larger-than-expected 32 percent drop in quarterly profit.
The cuts affect about five percent of the bank's 13,000 employees in consumer real estate.
Bank of America plans to offer mortgages through its 5,748 branches, where it employs about 10,000 personal bankers. It also has 2,200 mortgage loan officers in 33 U.S. states and Washington, D.C.
Source: Bank of America