WSJ | Bank of America to Exit Correspondent Mortgage Business
Bank of America to Exit Another Line
Bank of America Corp. intends to sell its correspondent mortgage business, as the troubled lender looks to narrow its focus and bolster its financial strength, said people familiar with the situation.
Employees could be notified as soon as Wednesday that the lender has decided to exit the correspondent channel because it no longer fits with the long-term strategy for its mortgage unit. The company decided to get out roughly four to six weeks ago, following a review led by mortgage chief Barbara Desoer. The business employs more than 1,000 people.
The move represents another repudiation of Bank of America’s 2008 purchase of Countrywide Financial Corp. That deal turned the Charlotte, N.C., lender into one of the nation’s largest mortgage players but also saddled it with hundreds of thousands of delinquent loans and an array of mortgage-related lawsuits. The bank has already exited the wholesale business, which involves buying loans from independent brokers, and it has stopped offering reverse mortgages.