Is There Hope for BoA, its Mortgage Business?

Bank of America's share price climbed to just over $6.50 Tuesday, a sign that investors somewhere are bottom feeding on this once proud banking franchise, one that shot itself in the foot (or is it head?) when it bought Countrywide Financial Corp. in 2008. In December its stock price hit a 52-week low of $5.13 compared to a yearly high of $15. If only it hadn't bought CFC. If only, if only. But it did -- and now the bank is trying to find its way out of a money pit that probably has reached bottom. Of course, we won't know (for sure) for several years. What we know is this: it continues to trim its mortgage operations. Wholesale is gone, as is correspondent lending. Servicing rights? Make them an offer! Warehouse finance is being shifted over to Merrill Lynch where it may become an orphan. Its retail LOs are leaving in droves, but some are staying put – out of loyalty to their employer and the fear of the unknown. Chances are 2012 will turn out to be a flat year for loan production (if we're lucky), one in which 'purchase money' and builder loans may grow nicely. But some builders and Realty firms are suspect of B of A's mortgage intentions. Will the bank prove them wrong this year?