A Tricky Turn of Events for Bank of America (BAC)

A Tricky Turn of Events for Bank of America

The Mortgage Bankers Association reported a drop in mortgage applications and refinance applications last week. In this video, Motley Fool financial analyst Matt Koppenheffer tells us how, if this is the beginning of a trend, it could be very scary for the banks right now, as the fees from these mortgage and refinancing applications had been a major part of banks offsetting their shrinking net interest margins. He also tells us why, if this is a trend, it could be particularly bad for Bank of America (NYSE: BAC ) , though he warns that we shouldn't jump to conclusions yet over one week's worth of data.

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Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment icon found on every comment.

Report this Comment On January 30, 2013, at 7:53 PM, Rifleman5779 wrote:

How old are these fools, they all look like their 23 and I'm supposed to listen to their advice. Give me a break!
Report this Comment On January 30, 2013, at 9:47 PM, TMFKopp wrote:

So you're upset because you disagree with the analysis or because I've got a young-looking face? Happy to address analysis questions if that's what you're focused on.
Matt
Report this Comment On January 31, 2013, at 9:16 AM, rayzur9 wrote:

Fees earned on mortgage origination cannot amount to a huge section of offsets. BofA is cleaning the sheets, paying for countrywide's fraud, and handling business. If they make any decision that would increase business it should be to lower or get rid of checking account fees. It should be evident by now that customers see no problem at all with switching to a credit union.
Share price is still way under share value, and I see this around 40 again in less than 2 years.
Report this Comment On January 31, 2013, at 9:19 AM, rayzur9 wrote:

Perhaps also, to offer some sort of incentive for homebuyers to purchase some of the foreclosures in their coffers. I did, got a great rate from BofA, and pay less for a 3bdm 1500sqft 2 story home, than I would for a 2 bdm apartment. About 800 a month for a house with 5K sq ft plot.

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A Tricky Turn of Events for Bank of America

Comments from our Foolish Readers

Report this Comment On January 30, 2013, at 7:53 PM, Rifleman5779 wrote:

Report this Comment On January 30, 2013, at 9:47 PM, TMFKopp wrote:

Report this Comment On January 31, 2013, at 9:16 AM, rayzur9 wrote:

Report this Comment On January 31, 2013, at 9:19 AM, rayzur9 wrote:

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