The bank had decided to exit the correspondent channel, which employs a lot more than 1, 000 people, because it no longer fits with the long-term technique for its mortgage unit, the Journal said.
Correspondents fund loans and sell these phones larger lenders.
The bank has used the correspondent channel to build origination volume and earn money by re-selling the loans to other parties and then servicing them, the actual newspaper said.
Loans purchased from correspondents accounted for 47% of Bank associated with America's mortgage originations, or $27. 4 billion, in the first quarter associated with 2011, the Journal said citing Inside Mortgage Finance.
Bank of America couldn't immediately be reached by Reuters for comment outside regular US business several hours.
The biggest US bank plans to cut 3, 500 jobs in the following few weeks, its Chief Executive Brian Moynihan had said in a memo in order to staff on Aug. 18, as it tries to come to grips along with $1 trillion of problem home mortgages.