Laughlin, 55, announced his resignation from Pasadena, California-based OneWest on June 21 and will stay with the bank through the end of July, according to spokeswoman Diane Henry. Laughlin will take over from Schakett, who announced his retirement on June 15, Bank of America spokesman Dan Frahm said.
“Terry brings deep mortgage and financial services leadership experience,” Barbara Desoer, president of Bank of America’s home-loan and insurance unit, told employees in a memo. “He has played a critical role in the mortgage industry developing creative mortgage finance solutions that balance the need of customers, investors and shareholders.”
OneWest is the successor to IndyMac Bancorp, which was seized by the Federal Deposit Insurance Corp. in 2008 at an estimated cost of $10.7 billion. The FDIC has since relied on OneWest to absorb other failed California lenders. Laughlin was on the executive committee at Fleet Bank at the same time as Moynihan and will be one of six executives reporting to Desoer.
Laughlin will be in charge of limiting home-loan losses and monitoring relations with mortgage investors, Frahm said. Schakett, 58, a former Countrywide Financial Corp. executive, plans to pursue entrepreneurial ventures, Frahm said. Charlotte, North Carolina-based Bank of America acquired Countrywide in 2008 and is the second-biggest U.S. home lender behind Wells Fargo & Co.
Bank of America’s home-lending business has reported $8.4 billion in losses since January 2008 because of soaring defaults by borrowers mainly in California, Florida and Arizona. Laughlin left Fleet and joined Merrill Lynch & Co. in 2005 before its acquisition by Bank of America, according to an FDIC statement.
“The problems at Bank of America are the same as OneWest, it’s just larger,” said Paul Hindman, managing director at Management Advisors International, which recruits mortgage- industry executives. “All the moving parts are going be very similar, but the magnitude and scale of the business is much larger.”
OneWest’s holding company is led by former Goldman Sachs Group Inc. banker Steven Mnuchin and owned by an investor group that includes billionaire hedge-fund manager John Paulson, J. Christopher Flowers’ private-equity firm, and hedge-fund manager George Soros.
OneWest reported a first-quarter profit of $435 million after earning $1.57 billion last year, according to regulatory filings. Mnuchin will work with the board in its search for a new CEO, Henry said.