Memo: BofA to Sell Correspondent Mortgage Business

Here is the memo sent to BofA staff from mortgage executive Barbara DeSoer:

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From: Home Loan News

Sent: Wednesday, August 31, 2011 4:19am

Subject: Important Message From Barbara DeSoer

To All IMS Associates

I wanted to provide this team with information about a strategic announcement our Home Loans business will make today that is consistent with our ongoing efforts to align the business to the bank’s customer-driven strategy.

Earlier this year, when we split out the Legacy Asset Servicing business, we did so in order for our team to focus on the future of the home loans business. We have made significant progress over the past several months and are taking steps to further position our business to serve the needs of the bank’s 58 million households and attract new mortgage customers with the potential to support growth across the franchise.

We are announcing our intention to sell the Correspondent Lending division in order to focus on our direct-to-consumer business. If a suitable deal is not identified, we will consider other options, including winding down the Correspondent Lending business in an orderly manner.

This decision continues the transformation of our Home Loan operations to building relationships and deepening existing relationships; it follows our exit from wholesale lending, reverse mortgage, and the sale of Balboa Insurance. The move also is consistent with our other company-wide actions to exit non-core activities.

We are in preliminary discussions with respect to a sale of the business. At this time, there is no immediate impact to our Correspondent Lending programs, clients, or associates. Our operations continue business as usual.

We are proud of the strength of our correspondent business and the consistent contributions this team has made, but this is a necessary move to align with the bank’s customer-driven strategy.

Understandably, this announcement creates some uncertainty for correspondent associates and clients. We are committed to keeping everyone informed about key decisions as they are made. In the meantime, it’s critical that this team continues to serve the needs of our clients and competes in the marketplace.

On Wednesday, we will have a series of calls and meetings to discuss this announcement and to address your questions. On behalf of the entire leadership team, I want to thank you for your continued dedication and hard work on behalf of our customers.

Source: Wall Street Journal