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How does Bank of America offset potential negative arbitrage expenses?

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How does Bank of America offset potential negative arbitrage expenses?

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Bank of America views the period between compliance review and loan purchase as the most critical time of the origination period. The longer it takes to resolve suspense items, the longer it takes to pool and deliver securities, thereby driving up the negative arbitrage expenses. Customer service often dictates a lender’s level of participation and interest in the program. Participating lenders are contacted regularly until loans registered under a program are delivered and purchased by Bank of America. Lenders also receive weekly pipeline reports and have 24-hour access to Bank of America’s Internet site to check the status of their loans in the pipeline.

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