CORRESPONDENT LENDERS ON ACTIVERAIN. . HOW MUCH OF YOUR BUSINESS IS FUNDED BY BANK OF AMERICA???

B of A getting out of ANY business is music to my ears.....I negotiate short sales, and, can not tell you how many agents and homeowenrs they have REALLY ticked off!!!!!

Ben, count me in!  I had a SS deal fall apart when BOA decided to negotiate a $3K difference!  The house next door was BOA owned, and was about 20% cheaper($/sf) than what I listed this one for. I couldn't figure out the logic.  About 2 weeks after I used equator to notify them the buyers withdrew the offer, I got a rejection letter. 

Wow, a hot topic I am sure.  Sad, 24.3% is a chunk.  I feel badly for the percentages for those brokers.  Even though their headaches...the impact economically?  I pushed ^suggested for you Lenn.

Typically, Lenn, they give a 45-60 day notice with no new apps taken once the cut off the lending.  Although, I'm sure there's going to be some major fall outs with this. 

Lenn

Bank of America is from either Mars or Venus but they are not connected to the real world of service.

Good luck and success.

Lou Ludwig

Lenn we are a Direct Lender.  All loans close in our name and funded by our money.  We may sell the loan afterward, but this change by Bank of America will not affect us.  In fact we stopped selling them loans over a year ago.

My lips are sealed. Ditto above.

Congratulations - This post is now featured in Silent Majority Group of Active Rain!

I think the biggest impact will be on FHA 203K loans.  Most all smaller lenders sell their FHA 203K loans to BOA's correspondent channel.  They are the primary player in that market.  Prospect Mortgage was BOA's biggest 203K customer until we took the 203K program in-house earlier this year.

Thanks for your post, Lenn!  I had many connections in specific neighborhoods where B of A worked in harmony with an Agent to wreck people's lives by convincing them that they would make money "in a year."  I do not have proof, but I firmly believe that there was FRAUDULENT activity on the part of the B of A, at least one appraiser and one very specific real estate broker. My involvement was with listing the subject properties for sale and hearing the stories from the offended parties.

I would like to see the B of A totally out of banking.

Your are right, Lenn, nothing is likely to happen to the B of A.  I have heard that the Broker involved in this behavior has moved out of the State of Arizona, and is now beyond the reach of any disciplinary action.

Our industry has very poor enforcement for bad behavior such as this.

Lenn,

Great article we are seeing a reduction from many of the large banks in that arena. From Augus till now have you stil referred to those mortgage people that are with correspondents and have you had any problems?