Reduced Consumers Choices For Mortgages

After taking huge losses in mortgage lending, various banks are getting out of the game. Bank of the America is the latest bank to reduce operations.

It doesn’t seem like anyone wants to lend money anymore unless it is to those with great credit.

The NYT reports: Bank of America closed its wholesale mortgage-lending operations on Tuesday, steering business away from mortgage brokers and toward loans to consumers and community banks, The Wall Street Journal reported.

The bank’s move may have the effect of limiting consumer choice in the mortgage rate market and promote Wells Fargo to the dominant position in the wholesale business, The Journal noted.

However, Barbara Desoer, president of Bank of America Home Loans, stressed that the lender’s decision would allow it to play to its strengths and have a more direct relationship with its customers.

“We tend to prefer business where we have scale,” Ms. Desoer told The Journal. “We love the direct-to-consumer business because it’s very closely aligned with the consumer franchise that Bank of America has.”

About Luke Ford

Raised a Seventh-Day Adventist at Avondale College in Australia, Luke Ford moved to California in 1977. He graduated from Placer High School in 1984, reported the news at KAHI/KHYL radio for three years, attended Sierra College and UCLA, was largely bedridden by Chronic Fatigue Syndrome for six years, and converted to Judaism in 1993. From 1997-2007, Luke made his living from blogging. Living by Beverly Hills (Alexander90210.com), he now teaches the Alexander Technique (moving the way the body likes to move). Lessons cost $100 each and last about 45 minutes. In 2011, Luke completed a three-year teaching course at the Alexander Training Institute of Los Angeles. His personal Alexander Technique website is Alexander90210.com. Luke is the author of five books, including: » The Producers: Profiles in Frustration » Yesterday’s News Tomorrow: Inside American Jewish Journalism
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