Bank of America Corp., the largest U.S. bank by assets, said Tuesday it will no longer sell mortgages through independent mortgage brokers, as it concentrates on lending directly to its banking customers.
The move allows the bank to redirect resources to support its direct-to-customer mortgage business, said Barbara Desoer, president of Bank of America Home Loans, in a statement.
A spokesman for the bank said that most of the 1,000 employees from its first mortgage wholesale channel will be able to transfer to one of the bank's other mortgage businesses.
Charlotte, North Carolina-based Bank of America had about 22 percent of the market share for U.S. retail mortgage originations in 2009, according to industry publication Inside Mortgage Finance. The bank had a U.S. market share of about 8 percent of the first mortgage wholesale business in 2009, according to Inside Mortgage Finance.
Like other large mortgage lenders, Bank of America has been battling to rein in losses on these loans as unemployment remains high and house prices are still low.
Separately, Bank of America said last month it is suspending some of its foreclosures in 23 states to review whether it has been conducting them properly.
Bank of America shares were up 3.5 percent at $13.60 in afternoon trading.
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