BankUnited to Cut Florida Banking Jobs
One Florida banking company is feeling the blows of the current economy and being forced to cut Florida banking jobs.
BankUnited Financial Corp. recently announced its plans to cut 12 percent of its workforce because of the failing economy. This means about 160 people will lose their jobs, and most cuts will be in residential lending support and operations.
According to an article by CBS4, the company plans to cut 85 jobs in Miami-Dade County, 21 in Broward and 13 in Palm Beach. More jobs will be eliminated on the west coast of Florida and outside the state, leaving BankUnited with only 1,000 employees.
The company reportedly must reduce staff because of the current state of the economy. The job cuts are expected to save BankUnited $11 million per year.
BankUnited, based in Coral Gables, also has reached an agreement with the Office of Thrift Supervision to help boost its capital base. Any agreement would prevent the company from issuing loans that could result in negative amortization. This means the bank will not be allowed to offer loans with reduced or no documentation.
“Those types of subprime loans helped cause the housing bubble, and are the one on which homeowners are defaulting at near record levels, causing that bubble to burst,” the article notes. “The company will defer interest payments on $237 million of subordinated debt, which is allowable under the terms of the loan for up to 20 consecutive quarters, as long as there is no default.
The company has weakened as the housing industry continues to fail,” the article adds. “There has been a significant drop in mortgage activity, especially in Florida, California and the Southwest.”