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Bank of America Home Loans Shifts Resources to Core Mortgage Operations; Exits Reverse Mortgage Origination Business

Friday, February 4, 2011 4:30 pm EST

Dateline:

CALABASAS, Calif.

Public Company Information:

NYSE:
BAC
"We made the strategic decision to exit the reverse business due to competing demands and priorities that require investments and resources be focused on other key areas of our business"

CALABASAS, Calif.--(BUSINESS WIRE)--Bank of America Home Loans announced today that it will exit the reverse mortgage origination business and move the unit’s operational resources into other critical areas serving customers.

“We made the strategic decision to exit the reverse business due to competing demands and priorities that require investments and resources be focused on other key areas of our business,” said Doug Jones, Consumer Sales and Institutional Mortgage Services executive for Bank of America Home Loans.

Bank of America Home Loans will continue to serve the needs of existing reverse mortgage customers and those with loans in process. “We fully understand the critical sensitivity of ensuring that our senior customers are provided with the same level of excellent customer service that we have provided in the past,” Jones said.

On Thursday, Bank of America announced the definitive sale of its Balboa Insurance organization to the QBE Insurance Group Ltd. The exit from Reverse Mortgage is an additional step in the efforts of Bank of America Home Loans to focus on its core mortgage operations.

Bank of America Home Loans entered the reverse mortgage business in 2006 and expanded its presence in 2007 following the acquisition of Reverse Mortgage of America in 2007 and Countrywide Financial Corporation in 2008. Associates not redeployed will have the opportunity to apply for open positions at Bank of America.

Bank of America

Bank of America is one of the world's largest financial institutions, serving individual consumers, small- and middle-market businesses and large corporations with a full range of banking, investing, asset management and other financial and risk management products and services. The company provides unmatched convenience in the United States, serving approximately 57 million consumer and small business relationships with more than 5,800 retail banking offices and approximately 18,000 ATMs and award-winning online banking with 29 million active users. Bank of America is among the world's leading wealth management companies and is a global leader in corporate and investment banking and trading across a broad range of asset classes, serving corporations, governments, institutions and individuals around the world. Bank of America offers industry-leading support to approximately 4 million small business owners through a suite of innovative, easy-to-use online products and services. The company serves clients through operations in more than 40 countries. Bank of America Corporation stock (NYSE: BAC) is a component of the Dow Jones Industrial Average and is listed on the New York Stock Exchange.

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