Although Bank of America – for now – is committed to staying in warehouse finance, it may exit that business as well.
B of A spokesman Dan Frahm clarified to National Mortgage News that the decision to stay in warehouse lending is dependent “to some extent on the interests of a potential buyer for our correspondent business. Bottom line, the final decision has not been made and cannot until we are further in discussions.”
Two days ago when the bank announced its intention to exit correspondent lending it said it would remain a warehouse lender.
Officials familiar with the situation said the bank is committed to keeping the correspondent business open through yearend.
One source said the bank plans to market the warehouse group along with the correspondent unit. (For a full analysis of the situation see the Monday paper edition of NMN.)
