Bank of America has reduced the level of assignment fees on B of A-agented deals that trade away from the bank. From Jan. 1 the amount was reduced $1000 from $3500 for up to four sub allocations on vehicles. After four deals there is a charge of $500 each. One banker said B of A cut the fee to promote liquidity.
In 2001, B of A waived assignment fees on all deals it originates that traded with the desk. This was prompted by a raft of rivals eliminating fees. However, along with J.P. Morgan, the bank has been reluctant to waive fees on deals that trade away. "A lot of people would like to see it waived. But B of A has a large back office that needs supporting," the banker added. Ed Hamilton, head of loan trading, declined comment.