This is big news. B of A has exited the correspondent channel on August 31, 2011. Loans purchased from correspondents accounted for 47 percent of B of A's mortgage originations, or $27.4 billion, in the 1st quarter of 2011, said Inside Mortgage Finance.
The biggest U.S. bank plans to cut 3,500 jobs in the next few weeks.
As they look to raise capital to meet new industry standarrds, and to cover losses that are potentially in the Billions from lawsuits.
AIG has a suit currently for $10 Billion. Approximately 1000 jobs in the correspondent division are to be cut as early as Wednesday.