BofA Will Slash 2,100 Mortgage Servicing Jobs and 2 Other Hot Stocks to Watch
Bank of America Corp. (NYSE:BAC): Current price $14.66
Higher interest rates are causing a drop in the demand for mortgages and Charlotte-based Bank of America is responding by to eliminating 2,100 jobs spanning its mortgage service segment, together with the closing of 16 offices by October 31. Word of this was per Bloomberg, further confirmed by knowledgeable internal sources.
BofA had made good use of the low interest rates during the financial crisis and the first phases of economic recovery, boosting their mortgage refinancing business — but recoveries invariably lead to rates going up, and here we have the situation as it now stands. Peer banks, which resorted to job cuts to stem further losses in their mortgage units, include Wells Fargo & Co. and JPMorgan Chase & Co.
Delta Air Lines Inc. (NYSE:DAL): Current price $22.69
Shares are up about 4.5 percent Tuesday in heavy trading with the carrier set to be added to the Standard & Poor’s 500 index this week. Following the close on Friday, S&P said that Delta Air Lines Inc. will replace BMC Software on the index. This should occur once an investor group that includes Bain Capital LLC closes on its purchase of the software firm, which is expected after the market close on Tuesday.
Ford Motor Co. (NYSE:F): Current price $17.57
Vice President and President, Asia Pacific Group, Dave Schoch, will participate in the Citi 2013 U.S. and European Industrials Conference on Tuesday, September 17. The presentation will start at 10:15 a.m. Eastern Time and will last for around 40 minutes. A listen-only audio webcast along with presentation materials will be made available.