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-Blogged 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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Rainer
165,163
Tony Anderson
Century 21 Community Realty - Habersham, GA
Realtor - Serving Habersham Banks, White & Hall Co

It is hard to get BofA lenders to return calls on the status of loans. I had a buyer who was passed from 1 BofA lender to another because of no returned calls.  Then my buyer finally won a bid on a home and the lender waited until close to closing to check title.  That should have been done when lender received contract.  Result in lender not not getting clear title in the beginning?  HUD closing attorney's would not close and needed 90 days for reconvince of title.  House was not sold and my buyer lost his $8000 tax credit.

Oct 11, 2010 02:03 PM #80
Rainer
62,321
Denver Johnson
West USA Realty, Mesa AZ - Gilbert, AZ

BOA this week sent me a message rejecting our offer on a property. The problem? We had not SENT them an offer-- so the rejected an offer that does not exist.

Oct 11, 2010 02:29 PM #81
Rainmaker
159,241
Tina Gleisner
Home Tips for Women - Portsmouth, NH
Home Tips for Women

Too bad most buyers don't know to stay away from BofA and WF. I walked away from WF closing 3 days before closing scheduled when they decided to play games & I wouldn't budge. GMAC kindly closed just 1 day later than original date.

I learned then that if anyone asks you to pre-pay expenses, that means they have a lot of failed closings and to turn around & walk out the door ASAP.

Oct 11, 2010 03:01 PM #82
Ambassador
1,952,723
Nestor & Katerina Gasset
International Properties and Investments LLC - Wellington, FL
Realtors, Wellington Florida Homes For Sale

Jerry #73- I know what you say to be true. I have also heard this from inside sources. It is disgusting because at the end of the day BofA poor customer service and lack of skill and care with customers will be forced upon brokers. They will in the end, unless we stop them, which I don't know that we can since they are so powerful now, be in control of real estate just like they have been nudging themselves in to real estate for a long time. NAR lobby is also minute compared to the Banksters Lobby! People won't and don't believe me. They just can't wrap their heads around something this "out there"- yet it is not out there if you read the tracks. 

Oct 11, 2010 03:42 PM #83
Ambassador
1,952,723
Nestor & Katerina Gasset
International Properties and Investments LLC - Wellington, FL
Realtors, Wellington Florida Homes For Sale

Ben- You speak from a different perspective. You do loans. Most agents do not. Most agents have had nightmares with BofA but again, as a listing agent I can not force a buyer to use who I want them to use. Katerina

Oct 11, 2010 03:45 PM #84
Ambassador
1,952,723
Nestor & Katerina Gasset
International Properties and Investments LLC - Wellington, FL
Realtors, Wellington Florida Homes For Sale

Ben- You speak from a different perspective. You do loans. Most agents do not. Most agents have had nightmares with BofA but again, as a listing agent I can not force a buyer to use who I want them to use. Katerina

Oct 11, 2010 03:45 PM #85
Ambassador
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Nestor & Katerina Gasset
International Properties and Investments LLC - Wellington, FL
Realtors, Wellington Florida Homes For Sale

Ben- You speak from a different perspective. You do loans. Most agents do not. Most agents have had nightmares with BofA but again, as a listing agent I can not force a buyer to use who I want them to use. Katerina

Oct 11, 2010 03:45 PM #86
Rainmaker
64,406
Susan Templeton
Washington Federal - Bellingham, WA

I personally consider Realtors closing loans as quite a stretch of training, expertise and physical if not technical territory not to mention the potential conflict of interest.

As mortgage bankers, we get pretty different information on a daily basis from our Bank of America relationship as we close hundreds of loans per month via their direct correspondent channel. To say they are no longer 'brokering' does not mean they are only going to close via their retail locations. Many mortgage firms like ours are designated underwriters. We work faster than the mother ship and get better pricing via more than one bank. Mortgage bankers offer better trained staff, personal accountability, and more options for borrowers. What's not to like about that? 

Oct 11, 2010 04:54 PM #87
Rainmaker
847,750
Marte Cliff
Marte Cliff Copywriting - Priest River, ID
your real estate writer

Well, there's one thing about it... B of A certainly has created a reputation for itself.

What upsets me is that my Countrywide mortgage is now B of A. I'm watching my statements carefully, making sure I have documentation of every payment.

Oct 11, 2010 05:49 PM #88
Rainer
44,437
James Jeter
Stonegate Mortgage - Carrollton, TX
James Jeter

Loan Originators for Bank of America, like all other banks and credit unions, big and small, are exempt from national and state licensing and education requirements.  Is it it a wonder that more loans aren't happening in the time requested if at all?  Why be accountable if you don't have to be?  When you're a behemoth, the penalties and fines associated with violating lending laws aren't as catastophic as being a self employed broker or loan officer.

Oct 11, 2010 06:16 PM #89
Rainmaker
84,117
Simon Mills
Mills Realty - Toluca Lake, CA

Banks in real estate is going to be a huge problem.  I am extremely disappointed to hear NAR accepting the sponsorship money from BofA.  There are so many of NAR members that cannot stand working with BofA it is mind boggling. 

Oct 11, 2010 06:38 PM #90
Ambassador
1,952,723
Nestor & Katerina Gasset
International Properties and Investments LLC - Wellington, FL
Realtors, Wellington Florida Homes For Sale

Simon- I was sick to my stomach when I saw that BofA sponsored NAR convention this year. This is a reason all on its' own for us not to go to NAR this year.  What was even sicker is listening to a webinar in which BofA was dictating commission structures and NAR host just sat there without saying a word. BofA acted like they are the broker. I was fuming. This is my business and I will charge the fee that I wish to charge and that our sellers are willing  to pay and BofA has nada to do about it. Can we say interference in a contractual relationship? But then again, they get away with anti trust violations all the time. Coach Katerina

Oct 11, 2010 06:43 PM #91
Rainmaker
139,823
Randal Jenkins
Coldwell Banker F I Gray and Sons Residential, Inc. - New Port Richey, FL
Your Investor Friendly Realtor

Have her call Rich Howe...Bank of America Mortgage.

727-484-7211. 

He can help.  Good Luck.

 

Oct 11, 2010 08:58 PM #92
Rainmaker
1,281,099
Gene Riemenschneider
Home Point Real Estate - Brentwood, CA
Turning Houses into Homes

At this point the only reason I think anyone would go to B of A for a loan is they are required to get a pre approval from them on a REO home.  This bank deserves to go under - They are too big to do a good job.  Just goes to show you what happens when you become part of the government.

Oct 11, 2010 10:44 PM #93
Rainmaker
207,898
Tom Waite
Thomas Waite Real Estate Broker - Cypress, CA
So Cal-Apartment Bldg Investments

Well, B of A has to do something to fill the time while they have a FIFTY STATE MORATORIUM on foreclosures and short sales, etc.

What did you think would happen?

Oct 12, 2010 12:59 AM #94
Rainmaker
334,178
Jon Quist
LONG REALTY - Tucson, AZ
Tucson's BUYERS ONLY Realtor since 1996

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.

Oct 12, 2010 02:58 AM #95
Rainmaker
340,438
Mike Bjork
American Pacific Mortgage - Redondo Beach, CA

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!!!!

Oct 12, 2010 11:45 AM #96
Rainer
14,335
Dawnita Griffith
Keyhole Land Company - Wheatland, WY
It does matter who you hire.

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

Oct 12, 2010 02:02 PM #97
Rainmaker
374,776
Kim Boekholder **Results Real Estate**
Results Real Estate 801.580.5624 - Sandy, UT
Broker, Selling Salt Lake Homes

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.

Oct 13, 2010 10:59 PM #98
Rainer
79,548
Cookie Hooper
True Blue Realty - Arvada, CO
Real Estate Sales & Property Management

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!

Oct 20, 2010 08:49 PM #99
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