Bank of America to open lending fulfillment centre in Dallas
Bank of America today announced that it will create a second fulfillment center for government loan processing in Dallas, providing jobs to about 150 associates formerly supporting the bank's wholesale fulfillment operations, which the bank announced last month it was closing effective Jan. 1.
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"We will leverage the knowledge and skill of our Dallas-based wholesale associates to help the bank manage the strong growth in demand for our FHA and VA loan products," said Bob Griffith, Bank of America Mortgage Fulfillment executive. "Texas is our strongest market for government loan programs, and we are thrilled to have the opportunity to grow our business there."
Bank of America opened its first government lending fulfillment operations center in Jacksonville, FL, in June 2006. That facility employs about 300 associates in its specialized government lending operations. Bank of America's production volume for FHA and VA loans is expected to be nearly $2 billion in 2007, more than double the volume from 2006.
"The dislocation in the subprime market has sparked renewed enthusiasm for FHA & VA loan products across the nation," said Allen Jones, Bank of America's Government Lending executive. "Government loan programs provide many borrowers with benefits over other programs since the loans are insured by FHA or guaranteed by the VA."
Bank of America's volume of government business has grown significantly in 2007 following a renewed emphasis in Bank of America's retail loan channels. Applications for government loan programs have increased to about 18 percent of total volume in the retail sales channel, up from the low single digits in 2006.
"More than 80 percent of government loans are provided to first-time homebuyers," Jones said. "With recent successful efforts to simplify the government loan process, we expect continued growth as more home buyers recognize the value and security of FHA & VA loans."