Mortgage job cuts at home finance, Nextar unit
By COCO SALAZAR
2/13/2006

Bank of America's acquisition of MBNA will likely result in thousands of layoffs, and some of the jobs being cut are mortgage-related.

Charlotte, N.C.-based BoA recently decided to integrate MBNA Home Finance into its operations, a move that involved the discontinuance of client acquisition for Nextar Financial, the business processing outsourcing company of MBNA Corp., BoA spokeswoman Julie Davis told MortgageDaily.com.

BoA completed its acquisition of MBNA at the start of the year. About 6,000 overall layoffs will result from the merger, Davis confirmed.

It is anticipated there will be mortgage employee layoffs, Davis said, but could not quantify how many and could not confirm the current number of employees at MBNA Home and Nextar.

"We'll be integrating the mortgage business and platform," Davis said. "As we look at how we're going to make that happen, other decisions will be made."

She noted that the mortgage portion is a much smaller piece of MBNA, which is mostly made up of credit card employees.

With Nextar, which handled origination and servicing mortgages for third parties, "we're still working out with clients how we're going to wind down the business," the spokeswoman said, noting the unit's staff will be valuable in integrating the technology platform.

"We haven't made decisions about jobs and offices ... [and] there's still not a time frame for the next decision," Davis added.

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