Bank of America Corp (BAC) Flunks Another Test

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This isn’t the first time B of A hasn’t made the grade on Fannie’s scorecard. There have been a total of five STAR Scorecards released which feature Peer Group One results, and Bank of America doesn’t appear on any of them. Wells Fargo & Co (NYSE:WFC), by comparison, makes an appearance on each, and JPMorgan Chase & Co (NYSE:JPM) and Citigroup Inc (NYSE:C)‘s Citi Mortgage have shown up sporadically, though neither made the cut for the 2012 year-end results.

An “F” for effort
Obviously, improving its loan servicing and customer service performance isn’t a priority for Bank of America, and that truly is a shame. The bank has been around long enough to know that customer service is a huge component of the mortgage business; even newcomer Nationstar — which has purchased boatloads of B of A’s mortgage servicing rights over the past year or so — has that part down, it seems. As for Wells Fargo & Co (NYSE:WFC), well, stellar service is apparently part of the reason it commands one-third of the mortgage market. Why can’t Bank of America watch, and learn?

Mortgage activity may be down at the moment, but that won’t last forever. When competition for mortgage customers heats up, I fear B of A will be left out in the cold. And for that, the big bank must shoulder all of the blame.

The article Bank of America’s Attitude Problem Will Be Its Downfall originally appeared on Fool.com is written by Amanda Alix.

Fool contributor Amanda Alix has no position in any stocks mentioned. The Motley Fool recommends Bank of America and Wells Fargo. The Motley Fool owns shares of Bank of America, Citigroup, JPMorgan Chase, PNC Financial Services, and Wells Fargo.

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