Yes, Bank of America is exiting the wholesale mortgage business. No, that doesn’t mean they’re going to stop lending.
The nation’s second-largest bank will stop offering home mortgages through brokers at the end of the year to focus on direct-to-consumer lending through its banking centers and loan officers. The move also eliminates the jobs in the bank’s consumer real estate unit.
Think tighter lending standards and a renewed focus on underwriting, as well as cost savings and an ability to leverage their existing retail channel.
∙ BofA to Exit Mortgage Wholesale Business [AP]