BofA News – Further Consolidation at the Top?

It’s hard to believe that Bank of America is exiting the Correspondent business.  The thought is almost unimaginable given their sheer size and market share however sometimes the market takes care of everything.  Hopefully BOA will be successful in selling the business and the ultimate purchaser will bring a new and energetic commitment to the space.

Can’t help but wonder if this isn’t the first phase of further consolidation at the top of the food chain.  Perfect time to align with mid-sized mortgage bankers…nimble, quick, responsive.  Our business was built by entrepreneurs and they will lead us out the mess of the last four years.   

- Mark Lynch, East Coast Division Manager

More on BofA’s Exit from Correspondent Channel

Our sources tell us that Bank of America is refocusing its resources on direct-to-consumer mortgage channels.  Their intent is to sell the Correspondent Lending division to another player in the market, but if a suitable deal is not identified, Bank of America will consider winding down the Correspondent Lending business.  The Bank says it is in preliminary discussions with respect to a sale of the business.  In the meantime, the Bank advises lenders that there will be no immediate impact to its correspondent lending programs, clients or associates — operations will continue business as usual.  The move also part of the bank’s efforts to strategically allocate capital and manage risk given current and pending capital rules and regulations.  These factors may limit the likelihood of a sale to another bank, leaving REITs and private equity is the likely bidders.

We have been told that they will stay in the warehouse lending business.  However we feel that once the Correspondent division is gone, they will most likely concentrate on larger lines with fewer lenders.

Bank of America to Sell Correspondent Mortgage Unit – Bloomberg

The trend continues. First BofA moves out of the Wholesale mortgage business, now they announce that they might sell or even just outright close the Correspondent mortgage channel. This is a clear trend with Banks getting out of the Mortgage business, now the nations largest in BofA.  This shows that companies like Mason-McDuffie Mortgage will be more and more the type of mortgage company people would want to deal with. A local, community based, and employee owned company.

- William J. Simpson, SVP of Production

Story: According to Bloomberg, BofA “plans to sell or shut its correspondent-mortgage unit as Chief Executive Officer Brian T. Moynihan seeks to stop losses on home loans.” FULL ARTICLE

AP: Spring buying boosts home prices in US cities

Boston Herald: AP – FULL ARTICLE

WASHINGTON — Spring buying pushed home prices up for a third straight month in most major U.S. cities in June. But the housing market remains shaky, and further price declines are expected this year.

Home Short Sales Increase as Banks ‘More Realistic’ on Market

Bloomberg: Dany Levy –  FULL ARTICLE

An increase in short sales, along with a shorter average time to sell such homes and bigger discounts relative to normal deals, indicate the market is clearing distressed properties more efficiently, Chief Executive Officer James J. Saccacio said in the statement. Total pre-foreclosure deals rose 19 percent from the first quarter, while slipping 12 percent from a year earlier, when a federal tax credit pumped up demand.

Real Estate Outlook: Affordability Remains High

Realty Times: Carla Hill – FULL ARTICLE
When it comes to home affordability, levels are at near record generational highs. The National Association of Home Builders/Wells Fargo Housing Opportunity Index (HOI) indicates that in today’s market “72.6 percent of all new and existing homes sold in the second quarter of the year were affordable to families earning the national median income of $64,200.”

White House Considering New Mortgage Refinancing Program

ABC News Radio: FULL ARTICLE
President Obama’s economic team is actively discussing several new proposals to help struggling homeowners, including another refinancing initiative for millions of holders of government-backed mortgages and possible changes to existing refinancing programs, which have heretofore had only limited impact.

AP survey: Economists doubt another recession

AP: By PAUL WISEMAN – FULL ARTICLE    

Another U.S. recession is not likely over the next 12 months. Neither is any meaningful improvement in the economy. That’s the picture that emerges from an Associated Press survey of leading economists who have grown more pessimistic in recent weeks. They say high unemployment and weak consumer spending will hold back the U.S. economy into 2012.

 

 

 

Mortgages Hit 2011 Low–Could Rates go Lower?

Fox News: By Peter Miller – FULL ARTICLE

It was hard to miss events on Wall Street last week, but the attention given to the Dow and its 500-point fall on Thursday mask an equally important story: Mortgage rates hit an eight-month low and are within striking distance of the lowest rates since World War II.

Are You Facing Foreclosure?

Realty Times – FULL ARTICLE
Carla Hill

Are you facing foreclosure? If so, you’re not alone. Millions of homeowners across the country have found themselves unable to keep their homes in today’s down economy. Investors let go of properties in strategic defaults and still other homeowners made tough decisions to walk-away from homes in search of jobs in new cities.