Hello, LOs!
Insider has an eye-popping story on the self-inflicted injuries at Bank of America's mortgage business. Some of the problems are not unique to BoA – nonbank lenders have been eating the depositories' lunch for years now, and the pandemic has also taken a toll on mortgage operations at JPMorgan Chase, Wells Fargo, etc.
But the Insider report suggests the bigger problem is BoA-specific dysfunction, a series of policy changes that have caused about 100 LOs to leave, with even more expected to exit once the June bonuses are in hand.
According to the report, branch-based mortgage sales staff were told last year to handle auto and credit card loans as well as mortgages. And their title changed to "credit-solutions advisor." With it came a new compensation structure, ending the commission model in favor of a salary and quarterly bonus. That new compensation structure was tied to overall branch performance, with the thinking being they shouldn't be rewarded for closing loans they didn't source.
Sources told the publication it effectively amounted to a pay cut.
Mortgage sales staff also chafed at the bank raising mortgage rates and downpayment requirements, putting LOs – excuse me, CSAs – at a competitive disadvantage. And few were pleased with being required to make a minimum of nine sales calls on a recorded line each week – cell phones don't count.
Naturally, the more entrepreneurial mortgage sales staffers see better opportunities elsewhere.
So, LOs, here's my question to you: where do you see Bank of America and the other large depositories in a few years when it comes to mortgage? Will they continue to lose ground? Share your thoughts anonymously by emailing me at jkleimann@housingwire.com.
James Kleimann
Managing Editor, HousingWire
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