Bank of America will cut roughly 3,000 jobs by the end of the year as the number of refinancing applications and troubled loans has fallen.

It is part of larger industry pull back in response to the changing housing market.

The country’s second largest bank laid off 1,200 employees this week, primarily from a unit that handles mortgage origination, company spokesman Terry Francisco said. He said the move is a response to a “significant” drop in refinancing applications that has been happening since the middle of this year.

Bank of America plans to make the bulk of the remaining reductions in its unit that handles troubled mortgages, such as foreclosures or loan modifications, as an economic recovery has eased the number of borrowers in distress. Francisco said many of the cuts affect contractors who were hired during peak demand.

— From wire reports