Bank Of America Leaves Mortgage Brokers and Buyers In The Dust

By
Real Estate Agent with International Properties and Investments LLC

Bank of America announced that they will no longer be working with mortgage brokers. They are leaving the wholesale part of the loan business. They will no longer be working with mortgage brokers to do loans. They say that the broker part of their business was only 4% in the first 6 months of this year. short sale specialists


President of Bank of America Loans- Barbara Desoer made this comment: " By exiting the first mortgage wholesale channel, we can redirect critical operational resources to further enhance our capabilities in direct- to -consumer channels." 

Hmmm, let's see. I wonder if that will be any consolation to the buyers they let hang out to dry due to their lack of customer care and service. 

We had one of our short sale listings under contract. The buyer that wanted to buy this listing was represented by another agent. This buyer walked into her Bank of America branch office because that is where she banks. They took her application and told her no problem. She got us her pre- approval letter and then she got us her approval letter. The buyer's agent even set up the closing date based on what BofA statements about the buyer getting her loan. The buyers had all their belongings in a moving van. The day before the closing our title company began to worry. Tina felt like BofA was stringing her along. They ordered the survey, the appraisal was done and the buyer had paid these outside of closing. 

The day of closing came and an hour before closing, BofA tells the buyer they were declining her loan. 
This of course was something that should have been decided months before the closing. There was nothing that had changed in this buyers application to warrant a change of decision. 

But in our experience this had been par for the course when it comes to buyers who walk into branch offices of Bank of America. 

We always cringe when we hear that the buyers just go into a branch office of a bank to get a loan for a house. Who is that loan employee of Bank of America working for? There is only a customer relationship not a client relationship. It is just the same reason you as a buyer need a buyers' agent to represent you when you buy a home for a builder. The sales reps in the builder's office are not working for you. They are working for the builder. 

This is just another step towards controlling the entire real estate transaction. You think they went away quietly after being defeated with trying to get into the real estate brokerage business? Yes, NAR was able to get a nice swift kick over the line- but they are not running off with their tails between their legs. They may have lost the fight but they plan to win the war. 

And Bank of America is sponsoring the NAR Convention in New Orleans....


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Copyright © By Katerina Gasset 2010*Bank of America Leaves Mortgage Brokers and Buyers In The Dust* 




 

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Re-Bloggged 5 times:

Re-Blogged By Re-Blogged At
  1. Jim Hale 10/09/2010 04:18 AM
  2. Pat Laracy Baker 10/10/2010 10:43 AM
  3. Ryan Case 10/10/2010 04:30 PM
  4. Adam R. Cohn 10/13/2010 10:45 PM
  5. Adam R. Cohn 10/13/2010 10:45 PM
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Comments 98 New Comment

Rainmaker
306,026
Jon Quist
Tucson's BUYERS ONLY Realtor since 1996
LONG REALTY

Please! If anyone on this site is surprised with ANYTHING not pure garbage coming from BofA, I have some nice swamp land I'd like to sell them.

October 12, 2010 02:58 AM
Rainmaker
289,973
Mike Bjork
FirstCal Mortgage

It seems that most or everybody here on the posts are lumping Banks as the only Direct Lenders.  Well, there are Direct Lenders, whom are strictly Mortgage Lenders.  Their core business is to provide loans.  Donne is correct that the Bank Loan Officer sits in a Bank all day and collects loan applications.  They aren't necessarily a loan officer.  Unfortunately, many consumers fall into the trap that they perceive their bank to do everything for them.  It's unfortunate because it creates a false perception.  I agree with Donne in her comments above.  I had started this business with a Broker.  I had never used BofA's wholesale and very rarely used Countrywide (while it had existed).  I currently work with a direct Lender, but our core business is strictly mortgages.  Like many of you, we don't have the luxury of working "bankers hours", but have to provide continuous customer service.  I found this to be the better choice for my clients and myself.  I have the ability to work with my underwriters to make loans happen in a timely manner.  When I worked on the Broker-side, I just felt there were a lot of obstacles while working with the Wholesale Underwriters.  A lot of the guideline overlays disappeared when I went direct.  I think it's a matter of preference here.  I think it's up to us to educate the consumer how to shop for a mortgage in this new era.  There is still an atitude that anybody will lend to them and they will have the below Market Interest Rate at No Cost.  I have to inform many of these type of borrowers that it's not the same.  People with 800 ficos DO get denied loans.  In this Market, it is best to work with a Loan Officer who can complete their transaction.  There are no such thing as an Easy Deal/Loan today!!!!

October 12, 2010 11:45 AM
Rainer
13,671
Dawnita Griffith
Jay Fear Real Estate

Sounds unanimous in the real estate world, BofA is not our favorite.

October 12, 2010 02:02 PM
Rainmaker
358,448
Kim Boekholder **Results Real Estate**
Broker, Selling Salt Lake Homes
Results Real Estate 801.580.5624

It makes me sick I have BofA as my current mortgage company.  I would love to refinance and get away from them but it is what it is.  Shame on NAR for letting them sponsor, maybe its a keep your friends close and your enemies closer.

October 13, 2010 10:59 PM
Rainer
79,548
Cookie Hooper
Real Estate Sales & Property Management
True Blue Realty

I sold a Short-Sale through BofA last year. It only took 8 months to close. Now, the Buyer is getting foreclosure notices in the Seller's name. Short-Sale dept did not communicate with the Foreclosure department. Way to go, BofA! I won't take a Buyer working with BofA. Too many problems!

October 20, 2010 08:49 PM
Ambassador
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Nestor & Katerina Gasset

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