Bank of America Home Loans announced it’s exiting the first mortgage wholesale channel to focus on direct to consumer retail, correspondent, and warehouse lending on Tuesday.
”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. “This is an investment in strengthening our competitive position by delivering on the services our mortgage customers expect from Bank of America.”
The exit will be completed following an orderly transition of loans currently in process, but brokers who do business with the reverse mortgage division will not be impacted. “Bank of America will continue to be prominent in the wholesale reverse mortgage business,” said Simon Richards, spokesperson for Bank of America in an email to RMD.
BofA is committed to purchasing and financing loans from correspondent Lending clients, including those approved to originate loans from mortgage brokers said Doug Jones, president of Bank of America Institutional Mortgage Services in a statement. “We intend to build upon our leadership position in that market to provide enhanced liquidity to the smaller financial institutions and independent mortgage companies that supply mortgages as our correspondent clients,” he said.
Bank of America is the 2nd largest wholesale reverse mortgage lender according to data from Reverse Market Insight.