Bank of America (Wholesale) - Wholesale Lending

Update (12-12-07): Bank of America issues a final sign-off to Wholesale:

Wholesale December Milestones

Update (10-26-07):

Click here to view the official Bank of America Announcement

Update (mid-day): We received what we believe to be an official statement from Bank of America:

Bank of America today announced that it will exit the wholesale mortgage business in order to devote increased energy to its expanding retail channels.

We will be fulfilling all of our contractual obligations to you and your customers. You will receive formal, written notification of the termination of our Wholesale Broker Agreement by end of day Friday, October 26 with an effective termination date of November 25, 2007. During this transition period, please be assured that our sales and fulfillment teams will continue to provide you with the exceptional level of service you've come to expect. If you have any questions during this time, please contact your account executive.

We thank you for your business and wish you continued success.

Original Posting (10-25-07): Numerous tips have come in regarding the apparent closure of the Whole Lending Division of Bank of America. Account Reps are already sending out farewell notices:

"It is with much sadness that I write to inform you that Bank of America has opted to close its Wholesale Channel effective December 31, 2007. This is a bank strategy to become number one in direct to consumer... do not have much information at this time but it is my understanding that all loans in the pipeline will be honored and we will continue business as usual for an additional thirty days from the date of this announcement."

Big news across most major newspapers today, B of A announced it is laying off 3,000 employees, approximately 2 percent of their workforce. From Google News and the Associated Press:

"The job cuts, which the company said come "in light of market conditions and strategic imperatives," are throughout the bank, but the majority are in areas such as business lending, treasury services, and capital markets and advisory services, as well as support staff."

We will update this during the day. We are looking for hard copy on this, so please email us information as it becomes available. Thank you.