CLICK BELOW LINK
http://ml-implode.com/imploded/lender_BankofAmerica_2007-10-25.html
This to me should be the biggest news off the mortgage press in some time. Bank of America always had great pricing and efficient service as a wholesale channel. This news comes as some have predicated. The big Banks may all roll up the carpets on wholesale and focus on retail originations.
I have never had a problem pricing against any Bank of America retail products. They are typically 3/8 - 3/4 off in pricing / rate. I anticipate other wholesalers pulling back just as B of A has. Lenders that come to mind are National City, M & T, Wachovia, Chase, Countrywide, Wells Fargo, Citibank and IndyMac.
I think this is the new business model for the larger banks. At least until the market settles and then the same old players, ones that are supposedly "imploded", will emerge yet again. I suspect many will follow B of A and some will stay involved in wholesale hoping to be the "last man standing", which happens to be my business philosophy at Open Mortgage.
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