Hundreds of mortgage positions in the state of New York are being eliminated by JPMorgan Chase & Co. While most of the jobs are in servicing, some are related to refinancing.
On Thursday, 350 mortgage employees were formally advised that their jobs are being eliminated. The layoffs will take place in 90 days.
The employees work at an office in Rochester. The New York-based company sold the building where the impacted positions are located.
Chase Vice President Jason Lobo explained in a telephone interview that most of the people being laid off handle delinquent borrowers and borrowers who are in foreclosure. The need for this staff has diminished as loan performance has improved.
Some of impacted employees support refinances, according to Lobo. Demand for refinances has waned due to higher interest rates.
While the layoffs are bad news for the impacted employees, they signal improvement for the U.S. economy.
Lower delinquency and foreclosures indicate that borrowers are having an easier time making their payments.
And while rising interest rates dampen refinance volume, they are a sign of improving employment and economic conditions.
The Rochester employees were informally advised on Jan. 29 about Chase’s plans to reduce staffing at the facility.
Support to be provided to the impacted employees includes career counseling, job fairs and the ability to apply for other jobs within the company.
