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Mon Jan 7, 2013, 12:09 PM

Do 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:
The lender ( BOA) also agreed to sell servicing rights on $306 billion in home loans in separate deals.

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

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Response to dixiegrrrrl (Original post)

Mon Jan 7, 2013, 12:36 PM

1. wow - related thread that linked here: 10 Banks Agree To Pay Billions For Wrongful Foreclosures

http://www.democraticunderground.com/?com=view_post&forum=1014&pid=359485
"10 Banks Agree To Pay Billions For Wrongful Foreclosures"

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Response to dixiegrrrrl (Original post)

Mon Jan 7, 2013, 12:39 PM

2. Bank of America, National Association, is the FDIC insured bank headquartered in Charlotte

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.

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Response to dixiegrrrrl (Original post)

Mon Jan 7, 2013, 12:41 PM

3. Two days after Christmas, BofA had Fort Hernandez evicted.

 

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.

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Response to Fire Walk With Me (Reply #3)

Mon Jan 7, 2013, 01:01 PM

4. BofA is selling bad mortgages to Nationstar, which will then do the collections, foreclosures, etc.

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.

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Response to FarCenter (Reply #4)

Mon Jan 7, 2013, 01:44 PM

5. and Nationstar is owned by

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

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Response to dixiegrrrrl (Reply #5)

Mon Jan 7, 2013, 01:59 PM

6. Newcastle and Fortress are jointly funding the acquisition of the mortgage servicing rights

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