Bank of America has been in business for nearly 150 years, since 1874, though its mortgage refinance department is younger.
It operates worldwide, in over 35 countries across Europe, Africa, Asia Pacific, the Americas, and the Middle East.
This size and considerable longevity can present problems that smaller banks don’t otherwise have to deal with—the bank is frequently involved in high-profile litigations that result in billions of dollars in costs, potentially passed on to its customers as higher interest rates and fees.
Between 2008 and 2014, Bank of America has been faced with $91.2 billion in settlements and legal fines—over 51 cases of judgments, settlements, and regulatory fines.
Almost two-thirds of the $43 billion imposed in mortgage lender fines since 2010 are attributed to Bank of America, on its own.
Many potential borrowers make the mistake of not looking at a bank’s reputation and financial strength, though this is crucial, as it provides protection for the consumer during any period of economic precariousness.
This is particularly relevant considering Bank of America’s legal issues over the past decade or so—despite these, the bank has excellent profitability ratings and high-quality assets, although it could have a higher capital ratio.
Another important indicator of reputation is how a company treats its customers.
As of February 2019, Bank of America has 46,635 complaints registered with the CFPB.
This is considerably higher than
any other lender we evaluate, though the company's size and reach must surely be taken into consideration.
On the other hand, comparably sized Wells Fargo has 10,000 fewer complaints than Bank of America, give or take, though it’s serviced approximately double the number of mortgages.
Negative reviews concentrate on issues with communication and customer service, as well as delayed processing times.
Of course, each consumer’s experience is unique, and depends quite heavily on their specific loan officer.
This may explain why according to the most recent J.D. Power
Primary Mortgage Customer Satisfaction Survey from 2018, Bank of America was in fifth place, only one point behind its closest competitor, PrimeLending.