Bank of America

[Name of the InstitutionTable of Contents

I.Executive Summaryiii

II.General Company Description5

III.Problem Statement11

IV.Analysis15

Market Analysis40

1.Mortgage Sales:43

2.Mortgage Underwriting:44

3.Mortgage Servicing44

1.Home Retention45

2.Credit Loss Mitigation45

3.Quality Control45

4.Customer Outreach and Advocacy45

5.Servicing Initiatives45

?Price:57

?Place:58

?Promotion:59

V.Recommendations82

References84

Executive Summary

Bank of America (BoA) was founded in 1904 as “Bank America Corporation”. The institution provides banking services in more than 150 countries. BoA is looking forward seriously to minimize risk and risk weighted products to rebuild its profitability and managing cost. The business plan would follow a detailed analysis of the business prospects of the company. The present scenario, practices, financial health of the institution would be analyzed.

The recent trends of the company indicate that BoA's plans to expand its operations and further enhance its global business. Despite the global recession over the past few years, the institution seems to be well directed towards the achievement of its short and long term goals. The major problem faced by Bank of America is the risk that prevails in the organization. The risk factor that prevails in the organization is not because of the liability side or deposit base, it is because of creditors or company's own credit worthiness. The risk that BoA is facing is the operational risk which is associated with the internal systems or people. It is observed that BoA's revenue shows a declining trend since FY2009. For instance, the company's revenue declined at an annual rate of 12% to $93,454 million in FY2011. Hence; this shows that declining revenue and profits could affect the company's growth prospects in the future as well. The Ex-CEO of the bank was Ken Lewis. Now the Executive Chairman is Charles O. Holliday and the Chief Executive Officer (CEO) is Brian T. Moynihan. Bank of America offers various products for personal banking, small business, wealth management, businesses and institutions.

The company is working towards its liquidity, leverage and market capabilities by introducing innovative products to create a value for the company and its shareholders. BoA focuses on lending and investing activities in communities that have a lower income at specialized and affordable rate through the combination of human and financial capital. The recent changes in the company's operations i.e. discontinuation of mortgage services and auto-financing avenues clearly indicate that the company keeps a close eye on its global operations. The vital elements of revenue production are also consistently analyzed to make vital decisions.

Presently, Bank of America is considering the available expansion avenues, but with a clear and straight forward approach. They are increasing their lending to SMEs by $ 5 billion. Their focus is also clearing the mortgage issues after the mortgage crisis and become the best deliver home loan service for their consumers. Bank of America is working on its fortress balance sheet by strengthening their liquidity, credit, capital and assets. BoA is known for many initiatives that display its lead role in banking sector and in innovation. For instance, in December 2011, it announced the launch of the Money Network Payroll Distribution Service sponsored by BoA. Further in March 2102, Bank of America Merrill Lynch, which is ...