Bank of America claims to be the nation’ s largest home loan lender based on number of loans. In the last quarter of 2012, Bank of America originated about $22 billion worth of mortgages. That’s about a third of what it produced in the first quarter of 2011. Even with a third of the previous year’s production, Bank of America was able to generate nearly 50% more revenue. The product which is driving the increase in revenue is the refinancing of existing loans which is showing signs slowing down. After absorbing billions in losses associated with its 2008 purchase of Countrywide Financial, Bank of America in 2011 said it would bring mortgage origination completely in-house and no longer purchase loans from other banks. Much of the re-financing is likely being done through the government’s HARP program. HARP loans, designed to help struggling homeowners refinance, can in some instances qualify an existing homeowner loan for a re-finance without credit approval or income verification. According to Federal Housing Finance Agency there were nearly 800,000 HARP refinances in the first 10 months of 2012, double the number for all of 2011.
For more information on whether you may qualify for HARP check out the government website below or contact a qualified mortgage broker.
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