Bank of America to Exit Retail Mortgage Lending in Six States

By
Mortgage and Lending with Guaranteed Rate NMLS# 2611 NMLS #151088

Yesterday, Bank of America, the 3rd largest retail mortgage lender in the country, announced its decision to exit retail mortgage lending in six states.  Citing low mortgage volume, Bank of America will exit retail mortgage lending in the six states of Alabama, Alaska, Montana, Nebraska, Wisconsin, and Wyoming.

National Mortgage News confirmed the announcement with a Bank of America representative.  The bank said that it will continue to serve customers in those six states with its online and telesales divisions.   

Bank of America's retail exit comes only days after the company announced that it will soon close its correspondent mortgage lending division.  The company ranks as the 2nd largest correspondent lender in the country according to NMN and the Quarterly Data Report.  The company had recently announced its intent to close the division if a buyer could not be found.  After talks failed, the correspondent division was slated for closure. 

The correspondent division's closure will have a huge impact on FHA 203(k) Renovation mortgage for many smaller to mid-size mortgage companies.  Unless the mortgage company has its own in-house draw department, most mortgage companies seller their 203(k) loans to Bank of America's correspondent division.  With Bank of America being the primary player in the FHA 203(k) correspondent arena, it will leave a huge void to be filled.  At Prospect Mortgage, we have our own in-house draw department to handle all FHA 203(k) and HomePath Renovation draw disbursements.  This means that it will be business as usual for all of our Renovation mortgage loans.

Only time will tell about the future of mortgage lending for Bank of America.

 

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It is always advisable to consult with a knowledgeable lending professional when navigating today's turbulent mortgage and real estate marketplace.  I am committed, qualified and equipped to help you evaluate your options!

 

Also check out:

Conventional Financing Mortgage Program Overview/Updates

FHA Financing Mortgage Program Overview/Updates

USDA Financing Mortgage Program Updates  

 

Programs Include:

 

  • Conventional (Fannie Mae & Freddie Mac)

  • FHA, USDA, & VA

  • Jumbo to $3,000,000

  • Bank Statement Program for Self-Employed Borrowers

  • Foreign National Program

  • Investor Cash Flow

  • Non-Warrantable Condos

  • Georgia Power Leaseholds for Lake Burton, Rabun, & Seed

 

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  • Rodney Mason is a Licensed Branch Manager located in Atlanta, GA.   He can be reached at (404) 591-2453.
  • Providing financing for all cities across Georgia including: Acworth, Albany, Alpharetta, Athens, Atlanta, Augusta, Austell, Avondale Estates, Blairsville, Bloomingdale, Blue Ridge, Bogart, Brunswick, Buckhead, Buford, Canton, Carrollton, Cartersville, Chatsworth, Clayton, College Park, Columbus, Commerce, Conyers, Covington, Cumming, Dahlonega,  Dacula, Dalton, Dawsonville, Decatur, Doraville, Douglasville, Duluth, Dunwoody, East Point, Fayetteville, Flowery Branch, Gainesville, Greensboro, Hampton,  Hapeville, Hinesville, Hiram, Jackson, Jefferson, Jonesboro, Kennesaw, Lagrange, Lawrenceville, Lilburn, Lithia Springs, Macon, Madison, Metter, Morganton, Morrow, Newnan, Norcross, Oakwood, Peachtree City, Pooler, Richmond Hill, Riverdale, Rome, Roswell, Sandy Springs, Savannah, Scottdale, Statesboro, Stockbridge, Stone Mountain, St Marys, Sugar Hill, Suwanee, Thomasville, Thunderbolt, Tucker, Tybee Island, Valdosta, Waleska, Warner Robins, Waycross, Wilmington Island, Winder, Woodstock, and many more.

    Providing financing for all cities across Alabama including:
    Alabama Port, Anniston, Athens, Auburn, Bessemer, Birmingham, Boaz, Bridgeport, Cedar Bluff, Chickasaw, Clayton, Coden, Dauphin Island, Decatur, Dothan, Eufaula, Fairfield, Fairhope, Florence, Foley, Forestdale, Fort Morgan, Fort Payne,Gasden, Grand Bay, Gulf Shores, Heron Bay, Homewood, Hoover, Jasper, Josephine, Madison, Meadowbrook, Midfield, Mobile, Mon Louis, New Hope, Orange Beach, Oxford, Oyster Bay, Phenix City, Prichard, Rainbow City, Saraland, Satsuma, Scottsboro, Selma, Troy, Theodore, Tillmans Corner, Trussville, Tuscaloosa, Vestavia Hills, Warrior and many more.

  • Providing financing for all cities across Florida including: Altamonte Springs, Atlantic Beach, Boca Raton, Bradenton, Cape Coral, Clearwater, Coral Springs, Daytona Beach, Delray Beach, Destin, Fort Lauderdale, Fort Myers, Fort Walton Beach, Gainesville, Hollywood, Homestead, Jacksonville, Jupiter, Key Largo, Key West, Lake City, Largo, Marathon, Mexico Beach, Miami, Naples, New Smyra Beach, Ocala, Orlando, Palm Coast, Panama City Beach, Pensacola, Pompano Beach, Port St Joe, Sanibel Island, Sanford, Sarasota, St Augustine, St Petersburg, Tallahassee, Tampa, Vero Beach, West Palm Beach, & Winter Park, and many more.

 

  • Providing financing for all cities across South Carolina including: Aiken, Anderson, Beaufort, Bluffton, Charleston, Columbia, Conway, Edisto Island, Florence, Greenville, Hilton Head, Johns Island, Myrtle Beach, North Augusta, Orangeburg, Rock, Hill, Spartanburg, Sullivans Island, Summerville, and many more.  
  •   

    Providing financing for all cities across Tennessee including: Athens, Brentwood, Bristol, Chattanooga, Clarksville, Cleveland, Cookeville, Dyersburg, Franklin, Gatlinburg, Greeneville, Johnson City, Kingsport, Knoxville, Maryville, Memphis, Morristown, Murfreesboro, Nashville, Newport, Oak Ridge, Pigeon Forge, Sevierville, and many more

 

All mortgage lending guidelines are accurate at time of post, but are subject to change without notice.  Please call for the most current information.

    

           

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Show All Comments
Rainer
93,432
Michael L. Brownstead
Keller Williams Realty - Allen, TX
ABR, GRI, MRP, SRS, 1SG US Army (Ret.)

Rodney, thanks for sharing the info, no big loss though, may the smaller, local lenders prevail!

Oct 07, 2011 06:24 AM #1
Rainmaker
601,542
Donne Knudsen
Los Angeles & Ventura Counties in CA - Simi Valley, CA
CalState Realty Services

Rodney - It sure is looking like BofA is ramping up an exit strategy doesn't it?  This has also had an effect on both CalSTRS and CalHFA programs here in CA.

Oct 07, 2011 06:44 AM #2
Ambassador
1,726,734
Richard Weisser
Richard Weisser Realty - Newnan, GA
Richard Weisser Retired Real Estate Professional

Rodney...

I think that BofA decided a long time ago that it did NOT want to be in the mortgage business. I wish they closed here in GA.

Featured in the Group "Whacked!!!"

Oct 07, 2011 09:30 AM #3
Rainmaker
437,701
Rodney Mason
Guaranteed Rate NMLS# 2611 - Atlanta, GA
VP of Mortgage Lending - AL, FL, GA, SC, & TN

Michael......Smaller lenders all sell their loans to larger lenders like a Bank of America. This will limit their options. 

Donne....It does appear that way.  Their correspondent exit has had an impact on bond programs across the country. 

Richard.....Its looking more and more that way.  Thanks for the feature.

Oct 08, 2011 04:14 AM #4
Rainmaker
247,030
Jackie - computer-training-atlanta.com
770.498.7333 - Atlanta, GA
Learn to leverage technology to get more done.

Hi Rodney - thanks; your blogs help me stay up to date.

Oct 10, 2011 07:52 AM #5
Rainer
478,183
Not a real person
San Diego, CA

I’m so far behind in returning comments but I don’t want to give up.
So I’m visiting as many blog posts as I can today
to spread some Tuesday cheer.
That means I probably didn’t read this post,
which is not going to prevent me from leaving some Tuesday cheer.
Feel free to delete this comment if it doesn’t make you cheerful.

 

Happy Tuesday!

Oct 11, 2011 01:33 AM #6
Rainmaker
288,656
Tim Bradley
Contour Investment Properties - Jackson Hole, WY
Commercial Real Estate Expert in Jackson Hole, WY

Hi Rodney,

BofA's departure from Wyoming is a huge deal for us. We have few large banks, and mostly community banks. The community banks rely upon large banks like BofA to purchase their loans. Hopefully someone else will take up the slack...

Oct 16, 2011 03:00 AM #7
Rainmaker
933,432
Joy Daniels
Joy Daniels Real Estate Group, Ltd. - Harrisburg, PA

I think this actually good news.  I wish one of the states was PA. . . they are very difficult to work with and I would not miss them.

Oct 19, 2011 10:04 AM #8
Rainmaker
437,701
Rodney Mason
Guaranteed Rate NMLS# 2611 - Atlanta, GA
VP of Mortgage Lending - AL, FL, GA, SC, & TN

Jackie.....I'm glad to hear.

Russel.....Thanks for stopping by.

Tim....BOA's exit will have a large impact on many lenders.  Especially those doing FHA 203(k)'s.

Joy.....Many do not like dealing with them.

Oct 24, 2011 02:12 PM #9
Rainmaker
846,120
Marco Giancola
Beachfront Realty - Miami Beach, FL
Realtor (305)608-1922, Miami Beach Florida

Hey Rodney-that is news to me surprised Florida isn't on the list with all the bad loans they wrote here-oh wait no I'm not!

Nov 13, 2011 07:32 AM #10
Rainmaker
437,701
Rodney Mason
Guaranteed Rate NMLS# 2611 - Atlanta, GA
VP of Mortgage Lending - AL, FL, GA, SC, & TN

Marco....It looks like they have exiting the states where they either had no retail banking presence or not much of one.  Their image has definitely suffered.

Dec 03, 2011 04:38 AM #11
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Rodney Mason

VP of Mortgage Lending - AL, FL, GA, SC, & TN
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