NEW YORK – Bank of America Corp., the second- biggest U.S. lender by assets, is regaining market share in home loans after shrinking the business, according to Chief Financial Officer Bruce Thompson.
The company’s cut of the U.S. mortgage market fell below 4 percent after it shut a business that bought loans marketed by third-party firms, Thompson, 48, said today at a conference in New York. The Charlotte, N.C.-based lender boosted home-loan volume 57 percent in the year through March by selling more products to existing customers, he said.
“We’ve been building that back up and expect to be in the 5 percent area as we exit the second quarter and look to continue to grow from that,” Thompson said. “That share gain is coming on getting what we believe is our fair share back.”
Bank of America, once the biggest U.S. mortgage originator after its 2008 takeover of Countrywide Financial Corp., fell to fourth place last year, according to newsletter Inside Mortgage Finance. CEO Brian T. Moynihan, 53, has made rebuilding that business a priority as he seeks to boost revenue after booking more than $45 billion in costs tied to the Countrywide acquisition.
The firm isn’t reliant on selling mortgages to Fannie Mae or Freddie Mac, the home-loan firms that have demanded mortgage refunds in the past, because many of the new loans are nonconforming ones that will be retained on the lender’s balance sheet, Thompson said.