Bank of America Corp. reshuffled top retail bank executives yet again this week, according to an internal memo obtained by American Banker.
Co-chief operating officer David Darnell sent a memo late last week, announcing a major shake-up of top managers in the bank’s consumer, small business and home lending units.
The changes come just a month after B of A Chief Executive Brian Moynihan ousted two top executives and streamlined the chain of command under two top deputies, Darnell and Thomas Montag.
Darnell has now increased the roles of two B of A veterans, Susan Faulkner and Laurie Readhead. Faulkner will continue to lead consumer and small business products but she will also take on home loans, secured credit underwriting, fulfillment and quality control, according to the memo.
Mortgage chief Barbara Desoer, who was once considered a possible successor to former CEO Ken Lewis, appeared to lose more power as Faulkner takes on home loans. Darnell’s memo says Desoer “will continue supporting the home loans transition and the integration with consumer and small business banking.”
Readhead appears to be a troubleshooter in the new arrangement, serving as the head of something called “consumer market and distribution optimization.” In that role, her responsibilities will be “focusing on driving out the New BAC ideas across the consumer organization while managing announced divestitures,” according to the memo.
Under its New BAC simplification project, Bank of America is laying off staff and selling assets as it tries to return to its core banking operations. Moynihan has said that a smaller Bank of America can earn better returns by focusing on deepened relationships with customers.
“Remember, we have the best franchise, capabilities, and customer base in the industry,” Darnell said in the memo.
The changes announced in Darnell’s memo break up major pieces of B of A’s home lending business.
Matt Vernon, B of A’s top sales executive for home loans, will now report to Dean Athanasia, who previously was head of the banking and direct investment division, and was a key member of Sallie Krawcheck’s team. Krawcheck, the former president of global wealth and investment management at B of A Merrill Lynch, was ousted in Moynihan’s September management shakeup.
B of A is also expected to put secondary marketing of home loans under chief investment officer Walter Muller, the person familiar with the changes says.
American Banker is a sister publication to National Mortgage News.
Daily Briefing | Monday, October 24, 2011
FHFA Waives LTV Cap, More to Spark GSE Refi Boom
The Federal Housing Finance Agency Monday morning unveiled long awaited changes to a White House refinancing program, waiving the LTV cap and certain origination fees on underwater Fannie Mae and Freddie Mac loans.
FBR Calls Largest MI Firm a “Buy”
Although the nation’s largest mortgage insurer, MGIC, continues to lose money, FBR Capital Markets Monday issued a report calling the firm a “buy,” saying it is “relatively better positioned” than its peers.
XML Reader Released for UMDP Appraisals Forms
With appraisers now generating valuation reports in the new data and format standards set by the government-sponsored enterprises, lenders are adopting new procedures and practices ahead of full implementation of Fannie Mae and Freddie Mac’s Uniform Mortgage Data Program.
Massachusetts Foreclosure Activity Remains Slow
Foreclosure activity in Massachusetts followed a similar year-over-year trend in September as the prior 11 months: it went down.
Index: Overall CRE Prices Inch Up Again
An index report Monday showed U.S. commercial real estate prices overall rose for the fourth month in a row.
Will Republicans Abandon Support for 30-Year Fixed Mortgage?
The bedrock of the U.S. mortgage market – the 30-year fixed-rate mortgage – may no longer have the same level of bipartisan support in Congress that it once did.
Moody’s Rates New U.K. RMBS Deal
Halifax Bank of Scotland is in the market with a new deal from its Permanent Master Trust program.
Metro CU Partners With Boston Home Center
Metro Credit Union, of Chelsea, Mass., signed on with Boston Home Center to develop and enhance mortgage programs aimed at placing homeowners in sustainable mortgages.
Investors Speak Out on Ratings Transparency
Reinstating trust in the ratings process is key to growing investor interest, according to buyside participants in a panel at an asset-backed securities conference in Miami last week.
CU Exec To U.S. Senate: Privatization Of Secondary Mortgage Market A Bad Idea
A leading credit union executive told the Senate Banking Committee this morning that ongoing proposals to wind down Fannie Mae and Freddie Mac and privatize the secondary mortgage market would harm credit unions and other community lenders to the detriment of millions of homebuyers.
Robust Foreign Real Estate Investment a Plus For U.S. CMBS: SP
Rising foreign investment flows into U.S. commercial real estate bode well for the CMBS sector, said Standard Poor’s.
Barclays Continues with CMBS Expansion
Barclays Capital has made several appointments to its U.S. CMBS team.