Bank of America lays off 110 in Rancho Cordova
10/24/2013 4:30 PM
10/25/2013 6:15 AM
Bank of America Corp. said Thursday it has laid off 110 workers at its Rancho Cordova mortgage operation as part of a nationwide cutback.
The layoffs were prompted by a decline in refinancing activity, as well as a reduction in delinquent loans, the bank said.
It’s the second layoff to hit the Rancho Cordova office this year; 57 workers were let go in April, according to state records.
According to a report in the Wall Street Journal, the bank laid off a total of 1,200 workers on Thursday and plans to eliminate another 3,000 jobs before the end of the year.
“The number of delinquent mortgage loans we service has decreased to less than one-third of the peak levels,” BofA said in a prepared statement. “As we continue to resolve the needs of customers with delinquent loans, we are reducing the size of the operations that support these specialized programs.
“Additionally, in line with the industry, we are realigning our cost structure in response to lower customer demand for mortgage refinancing. We are working with employees to identify opportunities both inside and outside the bank.”
Other big banks have eliminated mortgage-related jobs in recent weeks, with Wells Fargo & Co. cutting 6,200 jobs and Citigroup shedding 1,100.
Refinancing activity across the country has slowed substantially with the rise in interest rates. Lender Processing Services, which tracks the lending industry, reported recently that refinancings declined 30 percent between May and August.
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