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I found this on www.housingwire.com.
Bank of America’s overall first mortgage funded production increased 27 percent in the third quarter of 2007 when compared with the same period last year. Driving that overall increase was a 60 percent spike in funded mortgage originations through banking centers and a 26 percent increase in funded originations by mortgage loan officers.
So why do you think that is? My take on it? All of the stress and bad press that the mortgage world is receiving is pushing people toward the “perceived” safety of the “big” banks……
I don’t only think that it is “bad press” that is moving people towards the banks, but it is also a huge advertising blitz that the banks are doing in print, internet and on TV..
Didn’t they start there so called “no closing costs” promo at that point?
Rhonda, I think they did. I’ve had a couuple of people ask about the no closing costs, but when I explained the interest rate differential, they went with what we had to offer. But it’s a good “sales gimmick.”
Two words…Paper Saver
I just got a deal from BofA because the call center monkey couldn’t run LP. Of course, this didn’t come up until the last minute after the borrowers thought they were “pre-approved”. Pre-approved until they found out the 5% down payment was a gift. Only DU products. Of course, it ain’t a problem for brokers.
Their volume is up due to the press blitz. For A paper borrowers, the deals aren’t that competitive. It is shame so many people are paying too much for their mortgage going through some of these large retail banks.
Two words help explain their success: Paper Saver
Several reasons.. BOA had begun slowing down their wholesale production by this time. I had never seen BOA advertising retail mortgages on TV. Now I see it all the time. I commend their strategy of waiting for this market to expand their retail and pull out of wholesale. One more thing…BOA sucked at wholesale and I supsect they will ultimately suck at retail too.
Tom,
I’ve been watching this situation about bank of america for a couple of months. I blogged about it once my company was notified that they were discontinuing to offer wholesale service to the brokerage community. You can see what I wrote here: http://activerain.com/blogsview/252166/Bank-of-America-Out
take care
darrell evans
I find it interesting that Countrywide says eveyone is blaming the broker for the mortgage problem. However I think its quite clear that eveyone really is blaming Countrywide. Who really wants to be associated with Countrywide now? Arn’t they spending crazy money and attention tying to “Save the House” to no avail in slowing down the bad press they are receiving numerous times each day. Consumers can not disregard that bad press. Realtors don’t want to refer them loans and brokers have many issues of our own with them.
Also I think it is interesting that BOA is so aggressive in mortgage lending now when for years they litterally just pretended to be serious. Interesting strategy that they are just now aggressively entering an industry that has been resently devastated. No matter what ultimately becomes of BOA it means that they believe their is a good future in real estate and lending.