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Bank of America is laying off workers in Beachwood.

Bank of America employees leaving their Beachwood offices Thursday were devastated the operation is closing.

BEACHWOOD, Ohio -- Bank of America notified about 1,000 workers in Beachwood Thursday that they will lose their jobs as of Oct. 31 as the company closes its mortgage and consumer banking office.

Also closing Oct. 31: the bank's 55-person office in Independence and its 100-person office in Cincinnati. Workers were notified earlier today, said company spokesman Terry Francisco.

In Beachwood, about 660 of the jobs are in home loans fulfillment -- most of them working in refinance -- and 350 to 400 more are in customer service for consumer banking. The Independence and Cincinnati offices both involved home loans.

Employees will keep their jobs until Oct. 31.

Workers are being given severance packages. There are few opportunities for transfers because North Carolina-based Bank of America doesn't have any other similar operations locally -- only its Merrill Lynch investment offices.

Workers shuffled in and out of the Beachwood office this afternoon, many of them crying while making calls to family and friends. Those approached in the vast parking lot declined to provide much information because they said they feared their severance would be affected.

The mortgage offices worked with customers who were refinancing their loans, many of them related to the government's Home Affordable Refinance Program.

Francisco said the bank, which is second-largest in the nation, has continued to reduce its mortgage operations.

Today's announcement was driven primarily by the huge increase in mortgage interest rates, which has slowed refinancing considerably. Rates are up more than 1 percentage point since January, to more than 4.5 percent.

Refinances made up 70 to 75 percent of home loans nationwide last year, according to mortgage giant Freddie Mac. That percentage has dropped to 60 to 65 percent this year and is is expected to drop to 40 percent next year.

"Compared to peak levels in 2011," Francisco of Bank of America said in a statement, "today we have fewer than one-third the number of customers who need the specialized programs and support of this team. These actions also reflect our ongoing efforts to streamline our facilities and align our cost structure with market realities."

Beachwood Mayor Merle Gorden said the city was notified today as well.

"While we are always very disappointed to hear of any job cuts, we view this as a temporary setback," Gorden said. "The Cleveland Clinic owns the two buildings housing the affected Bank of America facilities. The Cleveland Clinic has thriving operations in Beachwood and we are optimistic that they might be able to expand into this space."

Further, he hopes that laid-off Bank of America workers could be considered for any new jobs the Cleveland Clinic might create.

Gorden said the city plans to talk "very soon" with the Cleveland Clinic about expansion possibilities in those buildings.

Bank of America last year was the city's third-largest employer based on income tax withholding.

Beachwood also told Bank of America that, if any employees would remain, the city would help the company find smaller space just to keep those jobs here.

The Beachwood office once employed 2,000 people when it was a credit card operation under MBNA and then Bank of America, which bought MBNA in 2006. The operation converted to mortgages the last few years as credit card use declined and refinancing soared. MBNA had been the world's largest independent credit card company, specializing in branded cards. After buying MBNA, Bank of America controlled 20 percent of the U.S. credit card business.

Francisco said the Bank of America "has a strong track record for helping our employees identify opportunities both inside and outside of the bank and we are working closely with leaders in the community to support a smooth transition.

"We remain committed to Ohio and continue to refine our business model to account for changes in the marketplace to both preserve our presence and plan for the future."

MBNA, built by business giant and former Browns owner Al Lerner, once occupied five buildings on the huge campus on Science Park Drive and along Interstate 271.

State Sen. Nina Turner, D-Cleveland, issued the following statement after Bank of America announced the layoff plans: "I am extremely disappointed by Bank of America's announcement to eliminate more than 1,000 jobs in Cuyahoga County. This decision is incredibly unfortunate, and will have a ripple effect in these workers' families, their neighborhoods, and the community at large.

"I am committed to working with Bank of America and leaders across the region to keep good jobs in Ohio. It is critical that we come together and ensure that these families, our communities, and our state remain strong."

Turner's office said a letter was sent to Bank of America CEO Brian Moynihan asking for a meeting to "find ways to keep these jobs in Northeast Ohio."