Jan 08, 2013
Bank of America rebuilding its home lending business
08 Jan 2013
Posted by Andrew Kantor
After three years and more than $43 billion in payments and penalties for forging documents, duping the government, and otherwise doing its part to create the Great Recession (including a recent $10.3 billion settlement with Fannie Mae), Bank of America may finally be ready to get back to business as usual — that is, making home loans.
The [Fannie Mae] settlement paves the way for the bank to have a “regular relationship” with Fannie Mae, after the government- backed agency last year cut the company off from funding for new loans, Vipul Jain, an analyst at Morgan Stanley, wrote in a report yesterday.
“As Bank of America clears out the legacy issues, we expect the focus of the firm to shift back from distressed servicing to traditional servicing and mortgage lending,” he wrote.