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October 26, 2007
B of A: No-Fee Loan Bringing Company More Market Share
Bank of America Corp. was the No. 1 retail mortgage lender in the second quarter, boasting a market share of 12.7 percent, Countrywide Financial Corp. fell to second place. BofA attributes its recent success despite weakness in the mortgage market to its "No Fee Mortgage Plus" product, which allows borrowers with credit scores as low as 620 to borrow 95 percent of a home's value. Borrowers do not have to pay mortgage insurance or application, appraisal, origination, title, flood determination or other closing costs on the product, which now accounts for more than 50 percent of BofA's retail production; and BofA President Floyd Robinson says the company has not offset the loss of such fees by hiking interest rates on other mortgage products.
Posted by S. Germain at October 26, 2007 08:01 AM