Mortgage lay-offs in Charlotte

The city of Charlotte is the second largest financial center in assets following New York City, and with that comes many mortgage brokers.  During the last year, banks have laid-off thousands of mortgage employees, and in the Charlotte area lay-offs were in the hundreds.  Over the last five months, the Charlotte Observer has reported in the losses of mortgage related jobs in three major banks.

  • SunTrust Banks said it told 19 underwriting and closing employees in Charlotte last week that their positions are being eliminated. A spokesman said the layoffs are part of an initiative, announced in October, to eliminate 800 jobs nationwide amid lower demand to refinance. The Atlanta-based bank continues to have mortgage operations in Charlotte employing roughly 60 people, the spokesman said.
  • Bank of America said last week it has cut a “small number” of mortgage jobs in the Charlotte area. A bank spokesman declined to provide an exact number.
  • Citigroup announced last month it is closing its default mortgage-servicing unit in the Fort Mill, S.C., area, affecting up to half of the 800- to 900-person workforce.

During the height of the Great Recession, interest rates hit record lows and that allowed homeowners the opportunity to refinance at very low rates.  During the second half of 2013, the refinance boom declined as mortgage rates increased.  With this decrease in refinances, banks are cutting mortgage employees as the demand for mortgage business has declined.

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