"Some analysts think the U.S. markets can weather the storm of higher oil prices. But Bank of America Merrill Lynch is doing them one better: They see higher oil prices as a “net positive” for their bullish outlook." Dave Kansas
$2,000 per month gas bill
A loan officer friend of mine at Sunstreet Mortgage, LLC commutes from Tucson to Sierra Vista every day.
Her gas bill last month topped $2,000. That was before prices in Tucson (usually the lowest in the US) shot up to $3.56 per gallon. I'll bet she doesn't share BAML's rosy outlook on the price of oil. And that's the reason for this post.
Elephant's Focus: the Stock Market, not the Real Estate Market
Are the Big Banks your bread and butter as an Agent listing and selling REOs and Short Sales?
Is the health of Bank of America's mortgage portfolio a driving force in the giant's business model? Don't count on it. We in the Real Estate industry are small fish, as this article yesterday on Bloomberg clearly illustrates.
There's a disconnect between Bank of America's mortgage portfolio operation and the focus of its operations as a global entity. Higher oil prices may be a problem for you and me, but in the big scheme of things, Bank of America is okay with that.
Sidebar: The Elephant is an Investment Company
I'm willing to bet that Bank of America's purchase of Merrill Lynch in 2009 (funded by the second round of bail out money) slipped under your radar. It did mine.
The portion of the elephant that we see is REOs and mortgage products. That's our livelihood right now, but Bank of America's website paints a different picture: "Bank of America Merrill Lynch focuses on middle-market and large corporations, institutional investors, financial institutions and government entities."
Takeaway: Don't cozy up to the elephant
My focus day in and day out is keeping my REALTOR clients happy. I do that by making sure that their purchase clients have a smooth, successful transaction.
What's your focus? You'll want to make sure that it's centered around your customer base, and not some entity that will step on you and not even notice. Elephants can do that...
courtesy Google Images
I'm Mike in Tucson, your preferred Tucson Arizona Mortgage Lender.
SUNSTREET MORTGAGE llc ~ Correspondent Mortgage Bank
Offices (AZ) Mesa, Tucson, Sierra Vista, & Nogales.