Below is Bank of America’s announcement that it’s closing it’s operation that buys loans from mortgage banks by year end. And here’s what it all means for consumers: BofA Cuts Off Mortgage Bankers
As previously announced, Bank of America Home Loans plans to exit the correspondent mortgage lending channel and focus entirely on retail distribution for its mortgage products and services. After a comprehensive review of market opportunities, Bank of America will close its Correspondent Lending channel by the end of 2011, following an orderly transition with Clients.
Effective immediately, no new Negotiated Trade pool or flow trades will be offered. Best Efforts and Mandatory locks will be accepted through close of business Monday, October 31. (All locks during this time frame must be 45 days or less in duration. Existing extension, relock, renegotiation, and trade extension/rolls policies will apply, but commitments will not be allowed to extend beyond December 15.)
AOT’s and Direct trades will be offered through close of business Monday, October 31. Impacted Clients will receive a separate communication shortly with key dates. Loans must be purchased by Correspondent Lending on or before December 15.
Existing locks extending beyond December 15 as of October 3 will be honored.
Bank of America will work closely with Correspondent Lending Clients to ensure an orderly transition for customers with mortgage loans in the pipeline.
All loans currently in the pipeline will receive full support and continue through the process.
Bank of America Warehouse Lending is operating business as usual while Bank of America evaluates opportunities for that line of business.