CHARLOTTE - Bank of America Corp., the second-biggest US bank, plans to stop making loans to mortgage brokers by year-end, a move that will cut 700 jobs, the bank said yesterday.
The exit from "wholesale" mortgage lending is part of the 3,000 job cuts disclosed Wednesday after Bank of America reported a 32 percent decline in third-quarter income on Oct. 18. Most of the other job cuts are in the bank's global corporate and investment bank, which reported a 93 percent decline in profit during the quarter.
At least 100 mortgage companies have halted loans, closed, or sold themselves this year. Foreclosures set a record in the second quarter, according to the Mortgage Bankers Association, cutting into demand from investors who buy mortgage-backed assets.