Bank of America this week laid off 280 employees who worked in mortgage operations in St. Charles.
The Charlotte, N.C.-based bank is closing a department that oversaw mortgage operations, and about 90 employees remain in the St. Charles office.
Affected employees were notified of the layoffs Wednesday. Bank of America now employs 2,200 people in the St. Louis area and has the second-largest market share of deposits in the St. Louis area, behind only U.S. Bank.
A Bank of America spokeswoman said the bank is working with affected employees to identify other job opportunities, including at the bank.
“The number of delinquent mortgage loans we service has decreased to less than one-third of the peak levels,” Jumana Bauwens wrote in an email. “As we continue to resolve the needs of customers with delinquent loans, we are reducing the size of the operations that support these specialized programs. Additionally, in line with the industry, we are realigning our cost structure in response to lower customer demand for mortgage refinancing.”
Several sizable banks cut mortgage-related jobs in recent months as interest rates rise and refinancing activity falls. In September, O’Fallon, Mo.-based CitiMortgage laid off 1,000 employees, affecting employees primarily in Las Vegas and Irving, Texas.