Bank of America Home Loans will exit the wholesale mortgage channel to focus on direct-to-consumer lending, according to a company press release.
Loans currently in the pipeline will be fulfilled and processed for consumers, and employees impacted by the wholesale channel exit may be redeployed in the company’s direct-to-consumer, correspondent, or warehouse lending units.
Or moved to teams currently helping distressed borrowers.
“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, in a statement.
“This is an investment in strengthening our competitive position by delivering on the services our mortgage customers expect from Bank of America.”
This is actually the second time Bank of America has exited the wholesale mortgage channel.
The first time was back in fall of 2007 – but today’s move is really putting Countrywide’s old wholesale lending platform to rest, the one that played a significant role in the eventual mortgage crisis.
Bank of America grabbed a hefty 22 percent share of retail mortgage originations in 2009, according to Inside Mortgage Finance.