The Massachusetts Mortgage Blog

Bank of America Exits First Mortgage Wholesale Channel. One of the main reasons that lender’s such as Bank of America are leaving the mortgage broker/wholesale channel is to regain control over costs and liabilities. Correspondent and warehouse lenders have their own capital at risk. Correspondent lenders usually process, underwrite, close and lend their own funds, so they have much greater ownership and risk than brokers. Rates to the correspondent lender are typically better than the large lending institution offer at their own branches as the overhead and risk is reduced at the correspondent level.

I would expect this trend of lending institutions to exit the broker channel to continue. If you would like to find out why working with a lender could be advantageous to you, please drop me a note.