Magazine article Mortgage Banking

Bank of America Exits Wholesale Channel

Magazine article Mortgage Banking

Bank of America Exits Wholesale Channel

Article excerpt

On Oct. 5, Calabasas, California-based Bank of America Home Loans announced it was exiting the first-mortgage wholesale channel. The lender will remain in the retail and correspondent lending channels. The exit will be completed "following an orderly transition of loans currently in process," according to a company press release.

The company said it plans to focus more operational resources on its fulfillment capacity for "its leading direct-to-consumer retail channel." It will also devote added resources toward boosting is leadership positions in correspondent and warehouse lending, according to the company.

"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. She added, "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 dominant share in retail originations, with a 22 percent retail share in 2009, according to trade publication Inside Mortgage Finance (IMF). That compares with just an 8 percent share in first-mortgage wholesale for the same period, according to IMF. …

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