ROANOKE TIMES
Copyright (c) 1996, Roanoke Times
DATE: Tuesday, October 29, 1996 TAG: 9610290074
SECTION: BUSINESS PAGE: B-6 EDITION: METRO
SOURCE: MAG POFF STAFF WRITER
THE BANK COMPANY says that while it will close its Roanoke mortgage loan group, it will enlarge its Plantation Road center. Few layoffs are predicted.
First Union Corp. said Monday it will close its mortgage loan servicing group in Roanoke, costing the community 121 jobs. But the move to Roanoke of another company to pick up some of the work, and creation of new jobs at First Union's Plantation Road service center will offset much of the employment loss.
Few, if any, workers will be terminated, the company said. The changes will be phased in, becoming effective in fall 1997.
David Scanzoni, spokesman for the bank, said the mortgage loan servicing group, which handles mortgages from throughout First Union's multistate system, had 200 positions about three years ago. The number has been allowed to shrink through attrition.
Of the 121 jobs, he said, 50 will transfer to a similar center in Raleigh, N.C. Workers in those positions can move with them, and First Union will pay relocation costs.
The goal, Scanzoni said, is to create greater efficiency and streamline operations by consolidating them at Raleigh.
Meanwhile, First Union will subcontract some of the group's work to Transamerica Real Estate Tax Service of Dallas. That company, a subsidiary of Transamerica Insurance Co. of San Francisco, will open an office in Roanoke and hire 32 people. It expects to give preference to employees leaving First Union's servicing group.
The subcontractor will handle real estate tax payments for First Union customers who have the bank perform this function with their mortgages, Scanzoni said.
He said Transamerica is expected to sublease space in the First Union Tower that is being vacated by the bank's mortgage loan servicing group. Transamerica expects to expand in Roanoke, gaining similar business from other companies, he said.
Transamerica could not be reached Monday for comment.
Of the 218,000 square feet in the downtown Roanoke office tower, First Union leases 102,000 square feet on floors 16 through 21. The top floor has been vacant and available for sublease for the three years First Union has occupied the building; Scanzoni said some additional space now may be available for sublease, while other space will be held for the bank's own growth.
First Union's lease extends to 2011. Scanzoni said the lease was recently lengthened ``as a vote of confidence in downtown Roanoke.''
Also announced Monday was that 62 jobs will be created over the next year at First Union's customer calling center on Plantation Road. This center also serves the bank's entire system.
These jobs will be available to workers in the mortgage loan servicing group.
The bank did not give pay ranges for any of the jobs being eliminated or added. Scanzoni said that about 30 of the 2,000 jobs First Union has in the Roanoke Valley are open through attrition at any one time. The bank will try to place members of the mortgage loan service group in jobs that interest them, he said.
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