Jan. 19, 2012
By MortgageDaily.com staff
|Refinance activity is so busy that Bank of American Home Loans has made the decision to turn off the spigot for cashout refinancing. It’s the second time in four months that such a move has been made.From the end of 2011 until last week, inquiries for refinance loans climbed 107 percent, according to the U.S. Mortgage Market Index report for the week ended Jan. 13 from Mortech Inc. and MortgageDaily.com.
BofA has seen a similar surge in refinance business.
In addition, spokesman Terry H. Francisco explained in a telephone interview that the company has become fully operational with the latest version of the Home Affordable Refinance Program. ”So that’s caused an enormous amount of volume to come in at the same time, and so we want to be responsible in making sure that we can help as many customers as we can,” Francisco said.
The Calabasas, Calif.-based company has therefore made a decision to put the brakes on cashout transactions until the elevated refinance activity recedes.
Francisco said the cashout suspension will remain in place until it is clear that overall processing for non-cashout transactions won’t be negatively impacted from the resumption of cashout lending.
In October, BofA suspended cashout transactions on loan insured by the Federal Housing Administration. Elevated refinance volume was also cited for that decision.
Information compliments of:
Bob Franklin, Mortgage Consultant
Wells Fargo Home Mortgage | 575 Price St, Suite 105 | Pismo Beach, CA 93449
Tel (805) 550-3395 | Fax (877) 609-0926