Bank of America to shut down lending division

[October 05, 2011]  NEW YORK (AP) -- Bank of America is closing down one of its mortgage units.

The Charlotte, N.C., bank put its "correspondent lending" business up for sale on Aug. 31. It couldn't find a suitable buyer and has decided to close the business by the end of the year, said bank spokesman Terry Francisco.

The division financed mortgage loans from small lenders such as credit unions.

Bank of America Corp. acquired the business as part of its 2008 purchase of mortgage lender Countrywide Financial Corp. In the first half of the year, it financed $50 billion in mortgage loans. The bank hopes to transition the 1,200 employees in the unit into other jobs within the company.

Bank of America has been shedding assets in an effort to focus on its core banking business.

[Associated Press]

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