Why Bank of America's mortgage business is booming - Business Insider

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Bank of America's mortgage tech bets have helped save billions and spark a boom in home lending. here's how it's outpacing JPMorgan and Wells Fargo.

After several years of watching its mortgage-origination volumes decline, the Charlotte-based megabank has turned around and leaned on the throttle in 2019. It's seen nearly 60% growth in origination volume through the third quarter.

Residential mortgage origination volumes at Bank of America nearly doubled in the third quarter, from $10.7 billion in 2018 to $20.6 billion. They totaled $50 billion for the first nine months of 2019, and growth is far outpacing the industry as a whole, which has seen a 30% year-over-year increase in home-loan production.

If these expensive bets continue to bear fruit and help win over would-be homeowners, Bank of America could reverse four straight years of losses in origination-volume market share and claw back into contention with Wells Fargo and JPMorgan Chase, the country's largest mortgage giants. In the run-up to the financial crisis, Bank of America gobbled up a slew of competitors, FleetBoston Financial, LaSalle Bank, and ill-fated subprime giant Countrywide Financial among them. Merging those systems to a single platform would cut costs and make life easier on loan officers, underwriters, and fulfillment teams.

 

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ctoricky Where's his top lip tho?

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