Bank of America Halts Cash-Out Refinances
Bank of America last week told its retail mortgage loan officers nationwide they’ll temporarily halt cash-out refinance loans, citing capacity problems.
A memo written by BofA home loans sales executive Matt Vernon notes that:
While we regret the inconvenience this will cause to some of our customers in the short term, we are making the responsible choice that is in the best interest of our long-term capabilities to provide a predictable customer experience.
The memo was provided to National Mortgage News by a confidential source.
In spite of arguments that this is some of the cleanest product ever to be originated, and profit margins being solid for many in the business, BofA seems to be backing off a bit. They produced just over $22 billion in mortgages during 4Q2011, a 75% decline from 4Q2010.
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