Bank of America to Exit the First Mortgage Wholesale Channel
Bank of America Home Loans will exit the first mortgage wholesale channel to focus more operational resources toward fulfillment capacity for its direct-to-consumer retail channel, helping existing and new customers obtain mortgage financing. Bank of America will also devote additional resources toward enhancing its leadership positions in correspondent and warehouse lending. The exit will be completed following an orderly transition of loans currently in process. "By exiting the first mortgage wholesale channel, we can redirect critical operational resources to further enhance our capabilities in direct-to-consumer channels," said Barbara Desoer, president of Bank of America Home Loans. "This is an investment in strengthening our competitive position by delivering on the services our mortgage customers expect from Bank of America." Bank of America holds a prominent share in retail mortgage originations, with 22 percent of the retail market in 2009, according to an industry trade publication. Bank of America's share of the first mortgage wholesale channel was eight percent in 2009. Conversely, Bank of America was the leading participant in the correspondent mortgage channel, with nearly 26 percent market share. "Bank of America remains committed to purchasing and financing loans from Correspondent Lending clients, including those approved to originate loans from mortgage brokers," said Doug Jones, president of Bank of America Institutional Mortgage Services. "We intend to build upon our leadership position in that market to provide enhanced liquidity to the smaller financial institutions and independent mortgage companies that supply mortgages as our correspondent clients." Associates impacted by the exit from the first mortgage wholesale channel will have the opportunity for redeployment to other Bank of America Home Loans units, including direct-to-consumer operational units that are helping Bank of America customers take advantage of historically low rates to purchase new homes or refinance existing homes. Associates will also have the opportunity to transfer to other Bank of America Home Loans units, including Correspondent and Warehouse Lending, Retail Sales and teams serving the needs of distressed borrowers. Bank of America will work closely with its first mortgage wholesale clients to ensure that loans currently in the pipeline are fulfilled and processed for consumers. For more information, visit www.bankofamerica.com.