Bank of America later today is expected to unveil a major announcement about its residential mortgage business, including an update on its future as a correspondent buyer of home mortgages, according to industry officials.
Since early spring rumors have surfaced that the bank would halt correspondent lending, where it ranks second nationwide, according to figures compiled by ASR sister publication National Mortgage News and the Quarterly Data Report.
In the first quarter, for example, BofA bought $27 billion in loans from other originators, giving it a 19.33% market share in the channel.
Early Wednesday morning a BofA spokesman said he could not comment on a report published in The Wall Street Journal about the bank exiting the sector. “We'll have something for you later on,” he said.
BofA's correspondent channel employs roughly 1,000 workers. The business also dovetails in with its warehouse division that has roughly $12 billion in outstanding commitments, industry sources said.
Among warehouse providers, BofA ranks first.