Early Friday morning the mortgage banking industry had yet to learn who exactly bought Bank of America’s $73 billion mortgage servicing portfolio with the bank declining to provide much in the way of details.
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Earlier in the week, during a conference call with analysts and reporters, B of A chief financial officer Bruce Thompson said the bank had signed an agreement to sell MSRs but did not specify the buyer or the dollar amount of receivables.
Thompson did say that the agreed upon sale would provide $500 million of “capital relief” to B of A.
The $73 billion figure was first reported by The Wall Street Journal, which said Fannie Mae was the buyer but the GSE denied it with a spokeswoman telling NMN, “Fannie Mae does not service loans but has a history of facilitating transfers of portfolios to high touch servicers in an effort to mitigate credit losses.”
Servicing advisor have since told NMN that Fannie is forcing B of A to sell the receivables and may be playing a role as a financer of the sale. Fannie declined to comment. (For a full update see the Monday edition of NMN.)
Daily Briefing | Friday, August 12, 2011
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