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.

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13 Responses to “WSJ | Bank of America to Exit Correspondent Mortgage Business”
  1. Lakshmi says:

    I am a builder. I just found out that Cornerstone Mortgage sold my client’s home improvement loan to BOA.. I finished the work on the house and am owed 10k. It is due now as the contract explicitly states. BOA said they won’t pay me for 30 days. I cannot wait 30 days and shouldn’t have to!!!!!!!!!!!!!!!! The mortgage company says “too bad. we can’t do anything about it”. I would never have dealt with BOA!!! How can they just hand this over to someone I would never have done business with!!!!!!!! I don’t even know if I will get my money!!!!!!! I am going into their bank on Tuesday and demand my money. If I don’t get it, I will make sure everyone in the lobby knows why!!!!!!!!!!

    • Tim Bryant says:

      Welcome to the new fraudulent world of mortgage finance. The banks are unaccountable and can break any and every law they choose.

      I believe that you can put a “mechanic’s lien” on the house, depending on the state you are in. Putting pressure on them through the media is also a good tactic. You’re case would get some play, because the industry is so fragile, and BofA is an example of how builders are being affected.

  2. matt thein says:

    shelley ive seen your previous’ve talked about g.hernandez being employed by both recontrust and mers could you call me at 253 377 6419 matt thanks

  3. Tim Bryant says:

    BofA has already sold its entire reverse mortgage portfolio to Fannie Mae

    • lvent says:

      They just keep tossing the fraud ball to a new court….pure evil… if changing hands changes anything…..there is nothing they can do to legalize fraud………or makes these secure debts….

  4. Anonymous says:

    What exactly does that mean, “correspondent mortgage business” ?

  5. Bictim says:

    I am only a customer of BofA by default when it took over from Countrywide. I can only say that my personal experience was the beginning of my total decline in any faith that the mortgage or banking business had any integrity whatsoever. They have a scripted “so sorry we didn’t meet your expectations” response to everything now since there is no such thing as customer service, only “Customers Serve Us”. Horrific criminal enterprise and aside from the fact that I don’t wish to see a lot of innocent people lose their jobs, this bank cannot bite the dust fast enough as far as I’m concerned. And a nice tar & feathering of those who participated in the lying and cover ups, having the audacity to take money from the taxpayers and continuing to defraud them, and to add insult to injury, outsourcing jobs to offshore phone banks, would be a plus.

    • bictim, so well said ,wish someone from CNN would print it, unfortunately no one wants to hear about the homeowners screw job, now it is jobs, jobs, jobs, which should have been a number one focus since the b refused to help anyone but themselves, and now they are complaining about interest hikes, oh well, that includes increase in homeowners payment, there is no win win for the average citizen!!

  6. housemanrob says:


  7. talktotennessee says:
    This site is one I found helpful. It is no wonder people never realize what happens at closings. Much is done under the table, outside closing by who we are dealing with and what their “labels” are in the process. This web site has a search engine, question access, up to date articles on the mortgage process that I found helpful.
    In trying to really understand what B of A is proposing in their restructure, I went to the site for a helpful, nonbiased explanation in common sense language with definitions and explanations.

  8. Just like a crook run while you can. Do they believe anyone sane would invest in their bank? Anyone who does not take their money out of this bank is either insane, or oblivous to the facts and not informed. My customers tell me constantly they have removed their money from the big banks and put it into credit unions. My credit union has business checking accounts and personal checking accounts. Once a crook always a crook. Bank of America can not think the people believe it was all Countrywide and WAMU’s fault. This was a conspiracy, consitant in continuity with the same game plan with each and every big bank and some small banks to intentionally, wrongfully commit fraud at every step of the way, to steal for mass profit, world wide,. Bank of American is guilty as guilty can get of all of it.

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