Bye Bye Bank of America WHolesale Lending

Bank of America announced today that it plans to exit the wholesale mortgage lending business. They state that as part of their “customer driven” business model they have decided to focus on opportunities to “deepen our relationships with existing Bank of America customers" and to offer responsible and competitive mortgage products to new customers. “By responsibly exiting our relatively low market share" (22%) “in the highly diversified wholesale mortgage market. We can redirect critical operational resources to enhance capabilities for consumers to purchase or refinance homes”

So let me get this straight, they think that by limiting distribution of their mortgage products they can somehow help consumers? It seems to me that by limiting access to product they are directly opposing what is in the best interest of consumers.

We have seen this before. In Washington Mutual's “glory days", that is the years before the whole mortgage meltdown, we watched Washington Mutual move in and out of wholesale lending time and time again. Interestingly enough their most profitable years coincided with the years that the majority of the loans they originated were through their wholesale lending relationships. We certainly wish Bank of America best success in this endeavor, after all it is a free country so why not put the squeeze on consumers if you can. Brokers, do not worry, they will be back. In the meantime, Bank of America is not the only game town

This blog was written by Brian Leavitt, Designated Broker of Northstone Real Estate Inc, and Northstone Mortgage.

Brian serves clients within the Northwest Multiple Listing Service. And specializes in residential re sale homes, condo’s and land, and is uniquely qualified as a short sale negotiator holding both real estate and mortgage licenses.

You can contact Brian directly by phone at 800-806-3145 or by email at brian@northstone.net. Click here to view his client newsletter.

Brian is licensed with the Washington State Department of Licensing and the Washington State Department of Financial Institutions License number MLO-114864 and is a member of the Seattle King County Association of Realtors and Northwest Multiple Listing Service.