Bank of America is abandoning mortgage broker business.
A message from a Minnesota account executive reviewed by MortgageDaily.com indicated the banking giant is exiting wholesale mortgage lending.
“We are ceasing wholesale operations as of Dec. 31st,” the message said. “What I know now is that you have 31 days from today to register a loan, and all pipeline loans must be closed by the end of the year.”
A Bank of America spokesman confirmed an announcement was forthcoming but declined to discuss any details pending notification of internal employees.
“I wanted to reiterate that this move is strictly a strategic move by the corporation,” the statement from the account executive said. “We did not run out of money, and have plenty of money.”
The Charlotte, N.C.-based company reported $48 billion in third quarter production — making it the fourth largest U.S. residential originator. But earnings were off more than $2 billion from the second quarter.
In 2005, BoA said roughly 30 percent of its business was from the wholesale channel.
“The corporation has made a strategic decision to focus on retail mortgages,” today’s note said. “Your loans in the pipeline and future loans will fund.”
But one MortgageDaily.com reader doubted the likelihood of loans in the pipeline closing, noting, “The kicker is that they are going to be looking for reasons not to approve the loans.”
