Maybe B of A Should Outsource Mortgages

By now you've read the exclusive on the National Mortgage News website – that Bank of America is halting (for now) cash-out refinancings. Maybe cash-out refis don't account for much of the bank's production. Then again, relatively speaking, there isn't much production left at B of A. In 4Q the bank funded $20 billion in home loans compared to $120 billion at the number one ranked Wells Fargo. It's safe to say that the two aren't even competitors (almost) anymore. A memo written by B of A home loans chief Matt Vernon admits that bolting from cash-outs will cause an “inconvenience” to some of its customers. Really? An inconvenience? Heck, they're only customers. (Remember B of A's debit card charge fiasco?) At some point, perhaps, a smart executive at B of A will realize that the bank has blown a golden opportunity to fund billions of dollars worth of super great credit quality mortgages – loans that have almost no chance of ever going bad. Instead, it's run away from the business, screaming like a teenage girl trying to avoid Jason (or is it Freddy?) in one of those 'Friday the 13^th' movies. Meanwhile, dozens of nonbank lenders across the nation are gaining volume thanks to B of A's near exit from the business. Good for them, I say. Good for CMG, TMS, Flagstar, PrimeLending, Franklin America, Stearns, Freedom Mortgage, New Day, and others. Hey, maybe, B of A should just outsource its mortgage production to someone like PHH Mortgage. It might be more convenient for its customers.