The mortgage business is one of Bank of America's clearest organic growth opportunities. In 2006, only 9.7 percent of our deposit customers who got a mortgage got it with us.
By expanding products and eligibility, eliminating fees and simplifying the mortgage process, we are building understanding among our 53 million customers that there are clear advantages to getting a mortgage with us.
In 2006, Bank of America expanded Mortgage Rewards™ to save home buyers on average $2,000 in closing costs. With Community Commitment™, we help more low- and moderate-income customers achieve home ownership. Through the innovative Best Value Guarantee, if we approve a customer for a mortgage and the customer chooses another lender — for any reason — we pay the customer $250. We are this confident in the quality of our mortgage products and services.
"Home ownership is central to the American dream. Mortgage financing must be a key strength for Bank of America to effectively serve all the financial needs of our customers," said Floyd Robinson, president of Consumer Real Estate. "We will take advantage of the strengths we have across the bank to bring the best mortgage solutions to our customers."
Over time, we will be able to distribute these mortgages to the fixed-income market, too. "It's important for the balance sheet to have self originated assets, said Chief Investment Officer Ian Banwell. "It takes maximum advantage of our company's significant ability to gather deposits, and it facilitates greater financial innovation for customers."
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2. Opportunities in the Mortgage Market
- Mortgage Rewards™ saves a typical customer up to $2,000 in fees.
- Community Commitment™ helps those with limited income or credit.
- We guarantee the best value to our customers, or we pay them $250.
- $2.8 trillion in U.S. mortgages to be originated in 2007 industrywide
- 10,000 associates in our banking centers coast-to-coast are enabled to originate mortgages
- $1.2 trillion domestic market for structured mortgage products