Major slashes mortgage jobs

by Adam Smith08 May 2012

A major bank is set to slash mortgage processing jobs with the closure of one of its service centres.

Commonwealth Bank has announced it will close its mortgage services processing centre in Melbourne by the end of 2012, moving some of the services interstate. It put the closure down to weak mortgage demand, as well as processing improvements.

The bank said it would try to find positions for most of the affected staff, but the move will still see around 100 employees face redundancy.

"Our priority remains to redeploy the majority of the staff who work in that centre and we have been successful in identifying alternative opportunities for many of our staff," the bank said in a statement.

CBA chief Ian Narev had previously vowed the bank was not considering any major redundancy programs, and had said CBA would not look to offshore jobs.

Finance Sector Union Victorian secretary Darren Martin expressed frustration with the cuts, telling the Australian Financial Review many long-time staff felt their loyalty was not being rewarded by the bank.

"I think at the moment, the banking industry has decided that cutting jobs is one way to prop up profits," Martin told the AFR.


  • by ozboy 8/05/2012 9:16:19 AM

    Pretty happy I am not a Melbourne based broker using CBA, the next few months are going to be processing hell!!

  • by A Broker 8/05/2012 9:53:16 AM

    CBA has one of the best mortgage processing back offices in the business, with their Melbourne office being exceptionally good. This is a very disappointing move; all the best to the staff that are being made redundant.

  • by Doug 8/05/2012 11:39:19 AM

    How can the CBA say the demand is dropping and yet it still takes them a week to process a loan application in Melbourne if your a non diamond broker??