Home Lending Direction "Flight to Quality": Mortgage Industry

I have to say that I have never heard anyone say that an Industry has taken a "Flight to Quality".  In the following story, from bloomberg.com Bank of America is said to gaining strong market share in the mortgage industry.  It is no secret that BofA is one of the big boys on the block but I think that it is pretty evident that they may soon be the proud new owner of a tattered Countrywide. 

It is funny that this comes up because tomorrow I will be attending the signing of my first set of loan docs from Bank of America.  I have never closed a loan with them before.  Our company has been a US Bank/Amtrust kind of company.  So far, I am very impressed with their procedures.  I thought they would be more stuffy and unwilling to conform. 

Basically, I think this may be a great thing for Bank of America to come in and take a dominating role in a problem industry.  This is one story that I will continue to follow!

• Bank of America Gains in Mortgages, Robinson Says (Update1)
  
• By David Mildenberg (October 9, 2007 17:04 EDT)
• Oct. 9 (Bloomberg) -- Bank of America Corp., the nation's second-largest bank, is gaining market share in home lending because of a ``flight to quality'' and the popularity of a mortgage that features no closing costs, the bank's top mortgage executive said. The bank had 8.1 percent, the industry's largest market share, of first and second mortgage loans made directly to consumers during the second quarter, Floyd Robinson, president of the Charlotte, North Carolina-based company's home loan business, said in an interview. The bank's share of total U.S. mortgage originations increased to 7.1 percent as of June 30, up from 5.7 percent a year earlier, Credit Suisse analyst Moshe Orenbuch said in an Oct. 2 report. (More)

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