General Discussion
Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsDo you have a Bank of America mortgage? Better read this:
BofA to Pay Fannie Mae $3.6 Billion in Mortgage Deal...is the headline.BUT..further down the page is this:
Nationstar Mortgage Holdings Inc. (NSM) said in a separate statement that it signed an agreement to acquire $215 billion
in residential mortgage servicing rights from Bank of America for about $1.3 billion.
http://www.bloomberg.com/news/2013-01-07/bofa-to-pay-fannie-mae-3-6-billion-in-mortgage-deal.html
This is big. Mortgage servicing fees represent a lot of money.
When BOA sold the Countrywide mortgages in the form of bonds, it retained the servicing rights ( fees).
Now it is agreeing to buy back the mortgages and to sell the servicing rights.
Last year BOA spun off its mortgage servicing into a separate company, called Bank of America N.A.
That is where we send our mortgage payment now.
looks as if we will be notified at some point soon we have a new address to send the payments.
Selling the Service rights is part of deal reached with the Gov't over mortgage fraud...see here:
http://www.occ.gov/news-issuances/news-releases/2013/nr-ia-2013-3.html
bananas
(27,509 posts)"10 Banks Agree To Pay Billions For Wrongful Foreclosures"
FarCenter
(19,429 posts)Bank of America Corporation is the stock exchange listed parent company.
Vernacular expressions, such as BofA or BOA, do not identify an actual legal entity.
Fire Walk With Me
(38,893 posts)BofA tricked the Hernandez family into foreclosure, then refused several (further) requests for a loan modification. Note that sheriffs had contacted them saying they were going to come evict them on the morning of Christmas eve, but ever oh so kindly waited until just afterward.
I'm watching BofA, and they are monsters deserving of complete dissolution.
FarCenter
(19,429 posts)Of the 215 billion portfolio, 11.6% of the 102 billion in Government/Agency and 33.8% of the 113 billion private label mortgages are 60+ days delinquent. So BofA is unloading servicing of a lot of risky mortgages on Nationstar, who don't have much to lose by playing hardball.
dixiegrrrrl
(60,010 posts)Newcastle which is owned by Fortress Investment grp.
"The servicer, majority owned by Fortress Investment Group LLC, surged 17 percent to $39 as of 9:32 a.m. in New York. The company has risen from $14 since the initial public offering.
Nationstar is paying $1.3 billion and will more than double its customer base to 2.5 million, the Lewisville, Texas-based company said today in a statement. The firm is battling with Ocwen Financial Corp. and Walter Investment Management Corp. (WAC) to snap up mortgage servicing rights as they wager they can profit as banks retreat because of new regulations that are driving up costs. "
http://www.bloomberg.com/news/2013-01-07/nationstar-surges-on-215-billion-bofa-mortgage-deal.html
Fortress is owned by former Goldman Sachs, Blackrock and USB honchos.
http://en.wikipedia.org/wiki/Fortress_Investment_Group
FarCenter
(19,429 posts)But Nationstar is owned by Fortress directly.
http://seekingalpha.com/news-article/3066991-newcastle-announces-a-new-msr-co-investment-with-nationstar-mortgage