Bank of America is cutting 3,000 jobs by the end of the year as the number of refinancing applications and troubled loans has fallen. It is part of larger industry pull back in response to the changing housing market.
Bank of America Corp. laid off 1,200 employees this week, primarily from a unit that handles mortgage origination. The company says this is in response to a "significant" drop in refinancing applications this year. The company plans to make the bulk of the remaining reductions in its unit that handles troubled mortgages as an economic recovery has eased the number of borrowers in distress.
It is one of many lenders to cut jobs: Wells Fargo said last month that it would cut 1,800 mortgage related positions on top of prior cuts.