Bank Of America Got It Right

Bank of America got it right when they dumped their field services operation. What a headache that was for the bank. Countrywide Field Services was part of Countrywide Home Loans. They were the only bank that had an “in-house” field services operation. Bank of America inherited it when they took over Countrywide. Bank of America made the decision to dump Bank of America Field Services and outsource all of the work.

That was a smart move on their part. Earnings are growing at Bank of America because they are making better decisions and cleaning up their act. Bank of America second-quarter profits soared, welcome news at a bank where recent quarters have often been walloped by mortgage-related problems. The earnings growth came largely because the bank cut costs and set aside less money for potentially troubled loans. While earnings popped 70 percent, revenue was up just 3 percent.