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BofA Mortgage
closing isle unit

Twenty-five will be laid off
as the parent firm revamps its
consumer real estate division

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By Russ Lynch
Star-Bulletin

Bank of America Mortgage will close its retail mortgage business in Hawaii at the end of this month, laying off 25 employees, including its general manager, Mark James.

George Owen, a spokesman for the parent Bank of America Mortgage in Jacksonville, Fla., said today the bank is restructuring its consumer real estate business and "will consolidate some facilities and some functions across the country."

He said Bank of America will continue to service its existing Hawaii mortgages through its wholesale system and will make mortgages available in the islands through other mortgage retailers, but will no longer take new mortgages directly.

Owen said the company would retain a few local employees for a small wholesale operation.

He said the intent of Bank of America Mortgage's restructuring was "to achieve greater productivity and increase revenue growth," but he declined further comment on the reasons for the local shutdown.

A source close to the Honolulu subsidiary said the fact that Charlotte, N.C.-based Bank of America Corp. no longer has banks in Hawaii was a factor. Bank of America sold its Hawaii branches to American Savings Bank in 1997.

Bank of America Mortgage, which is located on the 17th floor of the City Financial Tower at 201 Merchant St., is what used to be Honolulu Mortgage Co.

Bank of America acquired Honolulu Mortgage in early 1997 and retained that name until last year when it became formally integrated into Bank of America Mortgage.

James joined Bank of America Mortgage three months ago, after leading Irwin Mortgage Corp., previously called All Pacific Mortgage Corp.

Bank of America entered Hawaii's banking market in 1992 with the $165 million acquisition of Honfed Bank.

At the time of its sale to American Savings, Bank of America-Hawaii had 39 bank branches and 800 employees.