Bank of America Corp (BAC.N) is laying off 540 workers at its loss-making legacy assets and servicing business, which handles delinquent mortgage loans.

The job cuts would affect about 60 percent of employees at the unit's Charlotte, North Carolina, office who have received 60 days notice, bank spokesman Dan Frahm told Reuters.

Net losses at its Legacy Assets & Servicing business widened by $2.7 billion to $4.9 billion in the three months ended March 31, 2014 compared to the same period in 2013, according to the company's quarterly filing. (https://bit.ly/1yPgQTI)

Employees would have the option to apply for other jobs at the bank, including 150 positions at the Charlotte call center and another 250 open positions in Charlotte, the spokesman said.

The job cuts were first reported by the Charlotte Observer.