Bank of America, the second-largest U.S. lender, is cutting 450 mortgage jobs from its West Coast offices. The lending giant is reducing staff after new loan production fell short of internal forecasts.
In a report by Bloomberg, affected employees were told Wednesday that workers involved in processing home loans would be let go. California locations that will lose workers include an office in Concord; an office in Pasadena will be shutdown entirely.
Terminations are effective immediately, and employees will receive salaries for 2 months and be eligible for severance pay, said sources familiar with the proceedings.
"These notifications have been ongoing and reflect our previously announced efforts to reduce our size, resolve legacy issues and simplify our company," said Dan Frahm, a spokesman for Bank of America. The lender is still hiring in non-mortgage areas, and some employees will find jobs in other parts of the firm, he said.
This is the fourth time in a year that Bank of America has reduced personnel amid reduced demand for home loans. The firm cut 3,000 employees involved in making home loans in the last quarter of 2013. Other offices closed this year include Las Vegas, Nevada and St. Charles, Missouri.
Retail originations sank 49 percent to $11.6 billion in the fourth quarter, said CFO Bruce Thompson on January, 15.
Bank of America employed about 242,000 people as of December 31, 2013.