Bank of America stopped offering wholesale mortgages by Nina Gotzmannova

The crisis of U. S. economy and housing market has another victim. Bank of America, the nation’s second largest bank, decided to stop one of their services, offering wholesale mortgages trough brokers. Seven hundred people will lose their jobs in January. The bank decided to offer only mortgager straight to customers. They have 2,200 loan offices across the country, so they won’t need that much brokers as before anymore. The real estate division of Bank of America employs about 13,000 people and 7,000 independent brokers. The number 700 may not seem as high or disturbing, but considering the overall bad situation, those brokers are only people and most probably have loan on their own. If they lose their jobs, they would be less able to pay for the mortgage and everyone know, how it is hard to find a job during a crisis. Just take a look at all the poor workers in 1930s, when crisis affected United States and people were committing suicides because of it. But those 700 people are not the only ones who will remain unemployed. Bank of America decided to do a radical job reduction. After third quarter, when they noticed a significant loss in their earnings, they made a decision to cut 3,000 jobs. Fortunately those affected brokers, who will lose their jobs in beginning of 2008, can be saved. The bank offers them an opportunity to apply for open positions within the company and most probably they will be preferred. But if the earnings of Bank of America will still be slumping, the future for 203,425 employees wouldn’t be bright…

related story: http://news.yahoo.com/s/ap/20071025/ap_on_bi_ge/bank_of_america_mortgage;_ylt=ArmRTZMVbr8FKNKyCA9hzhqs0NUE

by Nina Gotzmannova for PocketNews (http://pocketnews.tv)

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