The local banking industry is taking a hit with news that Bank of America is closing its mortgage facility in the CrossPoint Business Park at the end of May. The Getzville facility employs 1,200 people but the total loss of jobs is being limited because Buffalo-based M&T Bank says it will take over the Getzville operation and hire at least 600 Bank of America employees to help service mortgages for a third party investor.
Another 100 workers are expected to remain with Bank of America, putting the net loss of jobs at 500. Bank spokesman Dan Frahm says workers were told Monday.
"We informed our employees this morning that we've reached an agreement with M&T Bank to assume to lease of that facility as of May 31 and extend employment opportunities to many of employees there," Frahm told WBFO News.
Bank of America says it is closing the mortgage facility because of the improving economy. Officials say they no longer have as many troubled borrowers that need help with their mortgages.
There may be other jobs available in the local banking industry and at GEICO, which is also hiring. Frahm says the center worked with people who were having trouble paying their mortgages.
Bank of America employs about 2,000 people in Western New York. Other operations are not affected by the announcement.