ATLANTA (AP) — Atlanta-based SunTrust Banks Inc. has informed employees that it will cut 800 positions in its mortgage business.
The bank joins others in a trend that's led to lost jobs as mortgage interest rates rise and fewer homeowners refinance their loans, The Atlanta Journal-Constitution reported.
SunTrust spokesman Michael McCoy said the cuts reflect current market conditions, particularly the reduced volume of mortgage loan refinancing.
Several major banks -- including Bank of America, Citigroup and Wells Fargo -- have announced thousands of job cuts in their mortgage operations in recent months. Bank of America announced recently that it will cut more than 2,000 jobs and close 16 mortgage offices. Wells Fargo reported in the third quarter that it shed more than 5,000 jobs during the period.
The reductions at SunTrust will occur over the next several months, McCoy said.
"We expect attrition to account for a portion of the reductions, however, many of those affected by this announcement will be notified toward the end of October that their positions are being eliminated," McCoy said.
McCoy declined to say where the cuts would be geographically, and it wasn't known how many would be in metro Atlanta. McCoy did say that 100 of the positions will be in the Richmond, Va. area, where its mortgage business is based. SunTrust currently has about 4,200 employees in its mortgage operations.