NORFOLK, Va. (AP) — Bank of America is planning to lay off more than 200 workers in Norfolk in a division that handles troubled mortgages.
The company recently filed a notice with state and local officials alerting them to the planned staff reduction in the Legacy Asset Servicing division. Layoffs are expected to take place March 29.
Bank of America released the following statement:
We’ve made significant progress in assisting mortgage customers, having helped nearly two million homeowners avoid foreclosure. We are proud to be a leader in delivering proprietary and government solutions as part of our continuing effort to support our mortgage customers in need of assistance. We are staffed to administer consumer relief programs including those under the DOJ settlement. We will not sacrifice service to our customers in need of assistance. The number of delinquent mortgage loans we service has decreased to one-seventh of their peak levels. Due to the dramatically lower demand for these specialized services, we are reducing the size of the operations. This division was created in 2011 and staffing grew dramatically to support the short term needs of mortgage customers at risk of foreclosure. Now, we are in the process of returning to normal staffing levels. The employees impacted by the changes in our business are eligible for and encouraged to apply for open positions at the bank. We have a strong track record for helping employees transition into new positions within the company. For those impacted and not able to find a new role at the company, we work closely with them and provide career counseling, services and resources to assist with finding a new role.
Senior Vice President, Communications
Bank of America
At its peak in 2012, the unit employed 42,000 full-time workers across the company as the Charlotte, North Carolina-based bank dealt with more than a million past-due mortgages. The bank has cut a third of those jobs as it reduces the number of delinquent loans through mortgage modifications, short sales, foreclosures and wholesale loan sales.