Rising interest rates mean the hits keep on coming for the mortgage sector of the financial industry, as two companies announced they will be cutting staff by as many as 2,100 collective jobs.
According to Reuters, Bank of America will be cutting between 1,200 and 1,300 mortgage jobs because of declines in company refinancing activity and improvement in delinquent home loans.
Employees in question are based in divisions of the company that handle mortgage processing means.
In addition, the news source also said Bank of America may aim to cut up to 3,000 jobs in mortgages by the end of the year.
Another 800 jobs in the sector will be lost, as SunTrust Banks has announced cuts stemming from current market conditions lowering consumer demand for refinancing, according to the Atlanta Journal-Constitution. When rates went as low as 2 percent in early- and mid-2012, many lenders went on hiring sprees. That ended in June as rates began to climb along with the recovering economy. They now stand above 4 percent.
These cuts are in addition to thousands of lost jobs already announced by companies including Citigroup and Wells Fargo.