Read the following news blurb.Â Its outrageous and completely false. Brokers MADE the banks. Brokers brought in almost 70% of the borrowers and that profit built Wells Fargo, BofA, Chase, and many others to the size and profits that enabled them to go straight to the borrowers. All they needed was a communication tool---that being the internet.
The BANKS MADE THE PROGRAMS.
The BANKS UNDERWROTE the loans.
The BANKS ACCEPTEDÂ and APPROVED the programs and borrowers
The BANKS CHEATED INVESTORS and sold unsafe products to them
Brokers only passed on the paperwork. Was there actual fraud? Sure but there is fraud in all walks of life. Id bet in some way their is fraud in department store shoe sales!Â Broker fraud is only a TINY portion of why the industry collapsed, yet the surviving banks blame us. The president of the Banking Association has tried to undermine and cut out brokers for a number of years.The ex owner of Countrywide has always blamed brokers. Now BofA is stopping wholesale through brokers and they cite BROKER FRAUD as the reason! What a crock of crap. Its just the final nail in brokers coffins as the banks divide and conquer whats left of the retail market. Read below:
Bank of America Corp., the third- biggest U.S. mortgage lender through independent brokers, plans to stop offering home loans through that channel, focusing on direct lending and acquiring debts from other originators.
The shift will â€œfurther enhance our capabilities in direct-to-consumer channels,â€ said Barbara Desoer, president of Bank of America Home Loans, in a statement today. The bank said it will phase out the business â€œfollowing an orderly transition of loans currently in process.â€
Lenders including JPMorgan Chase & Co. have stopped offering mortgages through brokers after lax practices among people signing up borrowers helped create bad loans and fueled losses. Bank of America made $8.2 billion of loans through mortgage brokers during this yearâ€™s first half, giving it an 11.8 percent market share, according to Inside Mortgage Finance. That ranks it behind Wells Fargo & Co. and Provident Funding.
About 1,000 Bank of America employees work in the broker division and the â€œvast majorityâ€ will be able to move to jobs in other units, said Rick Simon, a spokesman for the Charlotte, North Carolina-based lender. The firm ranked second in total home lending and first in loans acquired correspondent companies, according to Inside Mortgage Finance.
Brokers accounted for 10 percent of U.S. home lending during the first half of this year, down from a peak of 31 percent in 2005, according to the publication.
â€œMy biggest mistake, probably of my whole career, was not closing down our mortgage-broker business sooner,â€ JPMorgan Chief Executive Officer Jamie Dimon, 54, said in a March 2009 speech. The New York-based bank quit funding home loans through brokers in January 2009.
To contact the reporters on this story: David Mildenberg in Charlotte at email@example.com Jody Shenn in New York at firstname.lastname@example.org.
To contact the editor responsible for this story: Alec D.B. McCabe in New York at email@example.com;