BofA to sell another US$100 billion in mortgage rights: sources
ReutersBank of America Corp. is looking to sell collection rights on at least another US$100 billion of mortgages in the wake of announcing a sale of about US$300 billion of the assets on Monday, according to two sources familiar with the situation.
January 9, 2013, 12:09 am TWN
The bank said Monday that it is selling US$215 billion of collection rights to Nationstar Mortgage Holdings for US$1.3 billion and another US$93 billion of the assets to Walter Investment Management for US$519 million.
Reuters reported on Friday that the bank was looking to sell US$300 billion of collection rights, known as mortgage servicing rights.
The No. 2 U.S. bank by assets is among a number of banks looking to sell residential mortgage servicing rights as they have become increasingly costly and onerous to keep.
The sources, who declined to be identified because they are not allowed to speak to the press, expect Bank of America to announce more mortgage servicing rights (MSR) sales in the next several weeks.
Bank of America spokesman Dan Frahm declined to comment on any specific transactions but said the bank has been selling MSR for years and that that approach remained part of the bank's strategy.
“By reducing the size of our portfolio, we improve customer service capacity and resolve legacy mortgage issues and reduce risk in our portfolio,” he said.
Bank of America shares were down 1.4 percent at US$11.92 on Tuesday morning.