Mortgage expert witnesses may opine on mortgage fraud, residential mortgages, and wholesale mortgages, among other topics. TheStreet.com reported this week that Bank of America said it will stop originating mortgages through brokers, the latest sign of caution among lenders that are grappling with a horde of buyback requests, lawsuits and fraud accusations stemming from loans that were originated carelessly.
Bank of America isn’t the first lender to pare back its wholesale mortgage operations. JPMorgan Chase did the same thing last year, citing the fact that loans originated in-house performed better than those that came from brokers. Citigroup began downsizing its wholesale operations in 2008.
“By exiting the first mortgage wholesale channel, we can redirect critical operational resources to further enhance our capabilities in direct-to-consumer channels,” Barbara Desoer, who heads Bank of America’s mortgage division, said in a statement. “This is an investment in strengthening our competitive position.”
Read more: thestreet.com.