NEW YORK (Source: TheStreet By Philip van Doorn) — For Bank of America (BAC), exiting the correspondent mortgage business is a major, painful move to shrink its balance, boost capital ratios and shore-up control of its mortgage credit quality. According to the Wall Street Journal , the nation’s largest bank is planning to exit the correspondent mortgage business, through which it purchases mortgage loans originated by smaller lenders — and then sells them — while continuing to service the loans for a fee. According to the Journal, pink slips may be sent to as many as 1,000 employees as early as Wednesday.

Source: TheStreet By Philip van Doorn

08/31/11 – 07:15 AM EDT

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