Bank of America has announced that it will exit the wholesale lending business. Wholesale lending is the business of working with Mortgage Brokers in order to get loans originated. This is the third time Bank of America has exited the wholesale lending business. It had most recently got back into the business when it bought Countrywide and had to absorb its huge Mortgage Wholesale business.

Bank of America had an 8% market share for wholesale lending. B of A said it was going to focus on its retail lending and its correspondent lending.  Retail lending is when you call Bank of America directly to get a loan and correspondent lending is when it buys loans from other mortgage banks after they originate and fund the loans. Bank of America retail is notorious for delayed closings and frustrated borrowers so maybe this can help them get their act together. Keep Reading...