Improved performance on its residential loans means that staffing needs in distressed servicing have diminished at JPMorgan Chase & Co. As a result, hundreds of employees located on the East Coast have been laid off.
As of Sept. 30, 2012, the New York-based company reported a mortgage staff of 47,412 people. While that represented considerable growth from fewer than 40,000 employees as of the end of 2010, it represented a decline from more than 50,000 people in mortgage lending at the end of 2011.
Helping to reduce staffing needs is improvement in Chase’s residential delinquency, which had fallen to 5.1 percent as of the third quarter from more than 7.7 percent at the end of 2009.
Chase confirmed in a written statement that it laid off 300 employees Monday in Florence, S.C.
Impacted staff were notified that they would receive a 60-day non-working notice. They will receive 60 days pay and a severance package based on their years of service.
“Fewer homeowners are falling behind on their mortgages, so we need fewer employees to assist those who are struggling,” JP Morgan Chase Mortgage Banking spokeswoman Amy Bonitatibus said in the statement. “We will work with affected employees to find openings at Chase or other local companies.”
