Over the past few weeks, rumors have circulated that B of A (or Merrill) might possibly be considering issuing a jumbo bond some time in the first half of 2013.
At press time a B of A spokesman had not returned a telephone call about the matter.
B of A also exited warehouse lending, transferring part of that business to Merrill as well. At one time B of A was the largest warehouse provider in the nation with $15 billion in commitments.
Some large warehouse lenders cross-market their services to nonbanks, agreeing to both finance their production via warehouse or repo lines and buy their loans.
As a mortgage lender, B of A is now in just one production channel: retail, excluding Merrill’s secondary market purchases.