Bank of America Corp. will exit wholesale lending

Bank of America Corp. will exit wholesale lending at the end of 2007 to focus on direct-to-consumer lending through its own banking centers and loan officers, a move that will result in the loss of roughly 700 jobs.A week after posting a 32% decline in profits for the third quarter, Bank of America said it will eliminate 3,000 jobs, largely in its investment banking operations.About 700 of those layoffs will come from its residential mortgage unit in locations across the country, including Dallas, Texas and Richmond, Virginia, as well as Brea and Rancho Cordova, California.The Charlotte, North Carolina-based company began informing the affected mortgage employees on Thursday.Bank of America said those employees will be able to apply for open positions elsewhere within the company.The bank employs approximately 13,000 people in its residential mortgage division and works with roughly 7,000 independent brokers. Bank of America has declared its aim of doubling its current 5% share of the direct-to-consumer mortgages over the next three years. As the second largest bank in the nation, Bank of America is positioned to offer avenues for mortgage applications through its 10,000 personal bankers in nearly 6,000 U.S. banking centers, along with 2,200 mortgage loan officers in 33 states and the District of Columbia.The bank also offers direct-to-consumer mortgages through its website and a phone channel known as “LoanLine.”Although its third quarter loan production of $48.0 billion fell below the $51.9 billion mark of the prior quarter, Bank of America reported its national "no-fee" mortgage program was responsible for over $50 billion in application volume during the combined quarters.Introduced in May 2007, the loan product eliminates the collection of borrower, lender and third-party fees which can result in a few thousand dollars to the cost of buying a home. Posted on Friday, October 26, 2007 by staff