Bank Of America Shutting Down Correspondent Unit

Bank Of America Shutting Down Correspondent Unit Bank of America Corp. is shutting down its correspondent mortgage unit at the end of the year.

Bank of America spokesperson Terry Francisco, in an interview with Bloomberg News, said that the Charlotte, N.C.-based company was unable to sell its correspondent business. ‘We ended our search to find a buyer for that business, and we are moving ahead with winding it down,’ Francisco said. ‘We couldn't find a suitable buyer.’

Correspondent lending made up $21.8 billion, or 54%, of the bank's mortgage lending during the second quarter. However, Bank of America's mortgage business posted a $14.5 billion loss in the second quarter.

Francisco was unclear what would become of the 1,200 people employed in this unit, stating that the company was ‘actively looking’ to seek new positions for some of the impacted staff.

The bank has yet to issue a formal press statement announcing its decision.


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