Bank of America Peddling $35 Billion MSR Package


Bank of America is out in the marketplace with a roughly $35 billion portfolio of residential mortgage servicing rights through Phoenix Capital, Denver, according to investors and investment bankers who have been briefed on the sale.

The MSRs were slated to bid last week, but likely will settle this week, said one advisor, requesting his name not be used.

Both B of A and Phoenix declined to comment.

A handful of subservicing firms are looking at the receivables.

One investor described the portfolio as “mostly current” and “somewhat seasoned.”

The underlying collateral includes mortgages guaranteed by Freddie Mac.

Last fall B of A sold a $74 billion package of MSRs to Fannie Mae, which is using subservicing firms to process the loans.

Over the next few years B of A will sell MSRs on a quarterly basis as it continues to reduce its presence in the mortgage industry.

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