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Bank of America Sells Mortgage Servicing Rights to Nationstar

Discussion in 'Bank of America Mortgage Help' started by Housebroken13, Jun 5, 2012.

  1. Housebroken13

    Housebroken13 LoanSafe Member

    Bank of America Sells More Mortgage Servicing Rights - Deal Journal - WSJ

    Bank of America shed a bit more of its mortgage business on Tuesday.[​IMG]Associated Press
    The bank sold another chunk of mortgage servicing rights, the value it ascribes to the work it does on mortgages, a value that had shrunken as mortgage rates have plunged.Nationstar Mortgage said it was acquiring the portfolio, which it said was $10.4 billion as measured by the unpaid principal of the loans.Bank of America accounts for mortgage servicing rights by the future revenue it expects to earn and had about $7.6 billion on its books as of the end of March. The bank had a total $112.4 billion of loans in its consumer real-estate unit at that time.Recent quarters for the bank have been hit with volatile changes to the mortgage-servicing-rights value, including several large writedowns the bank has ascribed to the weak mortgage markets. Chief Executive Brian Moynihan has made paring back operations that aren’t essential to customers a key objective and said part of that would be selling these mortgage servicing rights.In 2011, the value of its mortgage-servicing portfolio fell to $7.4 billion from $14.9 billion, largely because the lower mortgage rates led borrowers to refinance their loans, reducing Bank of America’s expected cash flow. The bank also sold nearly $900 million worth of the mortgage servicing rights in the year.Moynihan has said recently that the bulk of the asset sales by Bank of America are done, but that mortgage servicing rights remain on the block.Nationstar, which services about $103 billion in loans at this time, said the loans it was purchasing were from Fannie Mae and Freddie Mac, the two government-sponsored enterprises that Bank of America has been feuding with on other fronts.
  2. Evan Bedard

    Evan Bedard Call 1-800-779-4547 Loan Safe Mortgage

    Thanks for sharing this article with the community Housebroken.
  3. kyosuke75

    kyosuke75 LoanSafe Member

    Yeah, I did receive a notice from BofA that they are selling my loan to Nationstar. Should I be concerned about this, especially when I was looking into doing a loan mod or Harp 2.0 refi?
  4. Evan Bedard

    Evan Bedard Call 1-800-779-4547 Loan Safe Mortgage

    No you have nothing to worry about, once your loan is fully transferred to Nationstar you can choose to work on a loan modification if you would like or contact any servicer participating in HARP to see if you are eligible for a refi..
  5. muhata

    muhata LoanSafe Member

    I am in a similar condition, with my BOA loan being sold to Nationstar. I was also working on a refinance, but my home is currently underwater. I know BOA was required to refinance such loans. Will the same conditions also be applied to Nationstar?
  6. Evan Bedard

    Evan Bedard Call 1-800-779-4547 Loan Safe Mortgage

    Welcome and thanks for joining the forum.

    Were you working on a refinance under the Home Affordable Refinance Program (HARP)?
  7. muhata

    muhata LoanSafe Member

    Yes, I had made an inquiry with BOA, been given some numbers, called them back, no reply, called BOA back after I got my notice of transfer and was told they couldn't do anything.
  8. Evan Bedard

    Evan Bedard Call 1-800-779-4547 Loan Safe Mortgage

    Even though BofA does offer refinances under HARP they are not required to do so. Also for HARP you do not have to use your current servicer and can choose to shop around for the best deal available. Is your mortgage owned by Fannie Mae or Freddie Mac?

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