Home / Daily Dose / Bank of America Further Reduces Size of Delinquent Mortgage Loan Division
Print This Post Print This Post

Bank of America Further Reduces Size of Delinquent Mortgage Loan Division

Bank of America Layoffs Delinquent Loan DivisionAs the size of Bank of America's delinquent loans portfolio is shrinking, so is the megabank's workforce – late last week, the bank announced that it was laying off 250 employees from its delinquent mortgage loan division in its headquarters city of Charlotte, North Carolina.

The affected employees worked in the bank's Legacy Asset Servicing Division, which is the division at the bank that handles troubled loans, according to a release from the bank.

"The size of the delinquent mortgage portfolio has reduced to just 189,000 loans at the end of Q4, down from a peak of 1.4 million in January 2011," the bank said in a statement. "We continue to reduce the size of our mortgage servicing operations in line with the successful reduction of our portfolio of delinquent mortgage customers. We have a strong track record for working with employees to identify opportunities both inside and outside the bank."

Bank of America originally announced it was laying off 540 Legacy Asset Servicing workers in Charlotte last June. According to the bank, 150 of those employees were successfully transitioned to short-term roles which are now nearing completion; those 150 were included in the layoffs announced late last week.

A report in the Charlotte Observer indicated that the number of employees in Bank of America's troubled mortgage division had declined by nearly two-thirds in slightly more than two years – from almost 50,000 in 2012 down to about 17,100 in December 2014. Meanwhile the bank's delinquent loans have also seen a 42 percent decline from the fourth quarter of 2013 to the fourth quarter of 2014, down to about 189,000, according to the report.

Bank of America augmented its troubled mortgage division in response to the financial crisis and in particular to handle the subprime loans the bank acquired when it bought out Countrywide in 2007. Bank of America has since had to pay billions in settlements to the Department of Justice over the packaging and selling of faulty mortgage-backed securities, largely due to the activities of Countrywide. That includes a record $16.65 billion settlement with the DOJ in August 2014.

About Author: Brian Honea

Brian Honea's writing and editing career spans nearly two decades across many forms of media. He served as sports editor for two suburban newspaper chains in the DFW area and has freelanced for such publications as the Yahoo! Contributor Network, Dallas Home Improvement magazine, and the Dallas Morning News. He has written four non-fiction sports books, the latest of which, The Life of Coach Chuck Curtis, was published by the TCU Press in December 2014. A lifelong Texan, Brian received his master's degree from Amberton University in Garland.
x

Check Also

The Industry Pulse: Changes at Five Star, ATTOM, Home Point

Get the latest on new hirings and promotions, emerging tech solutions, and more. Here's what's happening in the Industry Pulse.

GET YOUR DAILY DOSE OF DS NEWS

Featuring daily updates on foreclosure, REO, and the secondary market, DS News has the timely and relevant content you need to stay at the top of your game. Get each day’s most important default servicing news and market information delivered directly to your inbox, complimentary, when you subscribe.