B of A Struggles With Its Bad Loans
Posted By philhoov On January 22, 2012 @ 9:26 am In Inside Real Estate | No Comments
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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 [2]
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[1] Image: http://www.boiseblog.com/wp-content/uploads/2012/01/Bank-of-America1.jpg
[2] HousingWire.com article: http://www.housingwire.com/2012/01/19/countrywide-attorneys-general-and-the-bofa-turning-point
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