Mitchell Jaworski - AHN Reporter
Miami, FL (AHN) - BankUnited Financial Corp. announced on Friday they will lay of 12 percent of their staff, about 160 jobs. Cuts will mainly be in the residential loan support and operations division.
The bank expects the move to save roughly $11 million annually. The move was made to satisfy orders from the Office of Thrift Supervision (OTS), which stated the bank take actions to improve its financial strength.
"Unfortunately in this unprecedented economic environment, it has become a necessary step" to reduce staff, the company said in a statement, according to the Associated Press.
BankUnited also will defer interest payments on its $237 in subordinated debt. As long as they bank does not default on the obligations, non-payment is legally allowed for up to 20 straight quarters.
To further satisfy the OTC, BankUnited agreed to cease issuing loans that could result in negative amortization. They will also refrain from originating any loans that have reduced documentation.
With the majority of their loans originating in Florida, BankUnited has been hurt by the housing slowdown as Florida has been one of the hardest hit regions.
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