Bank of America Corp (NYSE:BAC) is planning to slash an additional 116 mortgage related jobs in the Dallas area, news that is sure to be good for shareholders but not worth mentioning to affected personnel. The proposed cuts will bring the total layoffs to 177 in the recent past. There are also reports that the bank is letting go up to 53 workers in the Nassau County New York.
Job cuts have become synonymous with Bank of America Corp (NYSE:BAC) which incurred a hefty fine for its involvement in the sale of substandard mortgages during the financial crisis. Earlier in the month, the bank had announced plans to cut up to 250 mortgage servicing jobs in Charlotte with an additional 200 jobs in Norfolk at a servicing center.
Bank of America Corp (NYSE:BAC) is considered the fifth largest bank in the Triad in terms of deposits with $1.56 billion and 2.9% market share. The recent wave of job cuts comes as the bank tries to resolve delinquent mortgage through in-house refinancing, and government backed modifications. The banks Legacy Asset Servicing unit was forced to increase its staffing in the wake of flooding of delinquent mortgages after the recession.
The cutbacks in jobs for the mortgage unit has seen the banks operating expense subside to $1.1 billion from /41.8 billion. Headcount has since dipped to 17,100 from a high of 28,800 at the end of 2013 compared to more than 55,000 people who worked at the bad mortgage business. Bank of America Corp (NYSE:BAC) affirms that as more effort continues to be paid to the delinquent loans, quarterly losses should come down to a few hundred million dollars by the end of the year.
Separately, Henry Mulholland, head of equities for Americas will be leaving Bank of America Corp (NYSE:BAC) after serving 25 years with Merrill Lynch. The development has already been communicated to the unit’s employees.