Tags: Bank | America | bofa | Mortgages

Sources: Bank of America to Sell Servicing Rights on $100 Billion in Mortgages

Tuesday, 08 Jan 2013 10:47 AM

 

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Bank of America Corp. is looking to sell collection rights on at least another $100 billion of mortgages in the wake of announcing a sale of about $300 billion of the assets on Monday, according to two sources familiar with the situation.

The bank said Monday that it is selling $215 billion of collection rights to Nationstar Mortgage Holdings for $1.3 billion and another $93 billion of the assets to Walter Investment Management for $519 million.

Reuters reported on Friday that the bank was looking to sell $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 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 mortgage servicing rights 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 $11.92 on Tuesday morning.

© 2014 Thomson/Reuters. All rights reserved.

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