When Bank of America completed the purchase of Countrywide in July, there was no mention of what would happen each companies reverse mortgage mortgage divisions. If you take a look at last months HECM endorsements, Countrywide was the third largest originator of HECMs and Bank of America was fifth. Together the two companies become the 2nd largest reverse mortgage originator behind Wells Fargo.
Recently I spoke briefly with Terry Francisco, Bank of America’s SVP of corporate communications who said that Steve Boland was recently named reverse mortgage executive at Bank of America. Boland spent 11 years with Countrywide and was managing director and CEO of Countrywide’s reverse mortgage division. The two companies will continue to operate as separate companies but full integration of their sales forces and servicing centers is expected in mid-2009.
Bank of America’s entrance into the reverse mortgage business is a great example of how large institutions can buy market share very quickly. Before buying Seattle Mortgage in June of 2007 the company had a relatively small footprint in the reverse mortgage business.