Bank Of America Closes Mortgage Unit*

Bank of America Corp. has UPDATE: NOT finalised a deal to sell its correspondent mortgage unit.

UPDATE: A spokesman for Bank of America emailed us a statement that the original subject of this article, is incorrect. He writes: “Today we announced to our associates and customers that we will close our correspondent lending unit by the end of the year in an orderly transition. We expect to find new roles for many of the 1,200 associates who currently work in correspondent lending. We are not selling the business to anyone. We evaluated the market opportunities but could not find a suitable buyer. I noticed that your story on Business Insider from earlier today states that we’re selling the unit to Fortress, which is false.” We regret reporting otherwise. The story originated on National Mortgage News.

Earlier:

According to National Mortgage News:

A BofA spokesman confirmed to NMN that the correspondent unit will close by year end, affecting 1,200 workers.

“We will wind it down,” he said. “We wil honour all rate locks up until October 30.”

Bank of America is Fortress Investment Group’s ninth largest institutional shareholder, according to data compiled by Bloomberg.

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at research.businessinsider.com.au.