B of A Struggles With Its Bad Loans
Bank of America has been forced to restructure and reduce its workforce as it deals with a mountain of delinquent mortgage loans.
The company slashed 7,000 jobs during the fourth quarter of 2011 and expects to cut more jobs this year.
As part of those cuts, B of A paid out $239 million in severance payments during the last three months of 2011.
To deal with its “legacy mortgage problems” (aka bad loans), the bank has created a separate division called the Legacy Asset Servicing Division with 48,500 employees who do nothing but deal with troubled mortgage loans.
B of A currently has about $4 BILLION worth of delinquent mortgage loans on its books.
This is one very troubled company.
Source: HousingWire.com article
January 22nd, 2012 Posted in Inside Real Estate
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