Bank of America is the second largest bank in the country, yet they’re poised to cut thousands of jobs in their mortgage departments in response to an unforgiving housing market and a severe lack of refinancing applications.
Most of the jobs being eliminated deal with mortgage modifications or foreclosures as an upturn in the economy has lessened the number of people who are struggling to keep their homes. When the housing market reached its lowest point several years ago, many large banks such as Chase and Wells Fargo contracted outside companies to help with the large influx of foreclosures and modification applications they were receiving. Most of the 3,000 jobs Bank of America plans to cut were those contracted to help during the crisis.
Bank of America isn’t alone in cutting jobs either. Plenty of lenders, large and small are scaling back in response to the market. Wells Fargo cut around 1,800 people last month and Citigroup announced 1,000 job losses as well. While the exact job locations have yet to be release, it’s expected that Florida, California and Texas will be some of the hardest hit states.
It’s an interesting, but not altogether unpredictable move by gigantic banks who infamously issued loans that never should have been made leading to the financial crisis of 2008. Since banks are no longer issuing high risk loans, they don’t need as many employees to work with people struggling with foreclosure. In Bank of America’s case, the number of people behind on their mortgages fell by around 94,000 cases in the third quarter of 2013. CEO Brian Moynihan expects the bank to issue less loans in the fourth quarter as well, possibly leading to more job cuts.
With the national sentiment surrounding mortgages uneasy at best, working with a competent and qualified mortgage loan company becomes even more of a necessity. Smaller lending firms such as Ace Mortgage in Coral Springs, FL structure their business around the needs and values of the communities they serve. When you receive a mortgage loan from a large bank, you become simply a number in their system. A lender like Ace Mortgage is always looking out for the best interest of their clients through a variety of means including always complying with the rules and regulations as stipulated by state and federal agencies. Ace Mortgage treats clients not as a number but as real people with questions and concerns about buying a home. Call or stop by today and speak with a mortgage loan professional and more importantly, someone who cares about you!