There have been rumors and whispers for quite some time that Bank of America was planning on exiting the wholesale loan business, and they finally made it official on Tuesday.
In a statement released Tuesday Bank of America Corp announced it will close the wholesale lending channel of its company that it obtained with its acquisition of Countrywide Financial Corp.
The company plans to focus more operational resources toward fulfillment capacity for its direct-to-consumer retail channel, which helps existing and new customers obtain mortgage financing, and toward enhancing its leadership positions in corresponded and warehouse lending.
â€œBy exiting the first mortgage wholesale channel, we can redirect critical operational resources to further enhance our capabilities in direct-to-consumer channels,â€ said Barbara Desoer, president of Bank of America Home Loans.
I’ve never had a strong relationship with a bank of america loan rep, and the mortgage broker’s I work with rarely do BOA loans, so I don’t expect this to have much of an impact in the San Francisco area. But it will be interesting to see how this changes the landscape of the mortgage market going forward.