NEW YORK ( TheStreet) -- Bank of America (BAC)has been backing out of the mortgage market, and several banks are well positioned to pick up the slack, according to a report published Wednesday by FBR Capital Markets.
Bank of America originated just 5.6% of new mortgages in the fourth quarter, good for fourth place among U.S. lenders, but down precipitously from the roughly 20% market share it grabbed from 2007-2010 (see chart).
The bank has exited the wholesale mortgage origination business and it hopes to be out of the correspondent mortgage business by year-end so it can focus solely on retail originations.
"The bigger guys with large legacy servicing books just want out of the business," says FBR analyst Paul Miller, author of Wednesday's report. "The reputational risk is killing them. If you're
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