Bank of America Divides Their Loan Servicing to Help Manage Borrower Concerns
That this subject which we will talk about a very important topic because it will promote your Read this issue
The largest servicing lender in the country has decided to divide their servicing units into two different divisions. A new unit called Legacy Asset Servicing will handle foreclosure files and discontinued loan products. This new division will help handle foreclosure files that may have faulty documents and to help resolve any wrong doing by the lender. It will also handle mortgage modifications and buyback claims on bad home loans sold to investors.
So who will be heading up this new unit at Bank of America? Terry Laughlin who joined Bank of America in July of 2010 as the executive mortgage units handling credit loss mitigation strategist.
Since taking over Countrywide home loans the lending giant has lost over $8.92 billion in 2010 due to some of the toxic loans Countrywide wrote back in the refinance boom. Countrywide was writing one in six of the nations mortgages back in 2006. The California based mortgage company was known for its creative loans, creating a market of subprime and other alternative mortgages. These loans were given to homeowners who did not have the financial ability to pay back those loans and who are now in default. In addition to the continuing of consumer defaults on mortgages, the lending giant is now also facing buyback claims and lawsuits from investors who bought these loans, but are now claiming the lender sold them a bad investment.
Recently Bank of America settled a lawsuit with giants Fannie Mae and Freddie Mac an estimation of $2.6 billion. Some analysts state the lender will still face possibly over $10 billion in additional lawsuits from private buyers.
Bank of America, which is based in Charlotte, N.C., has also been beset with lawsuits related to securities backed by toxic mortgages. In regulatory filings the bank has said it, Countrywide and its Merrill Lynch unit have been named as defendants in suits related to the sales of more than $375 billion in mortgage-backed securities.
Despite all the headaches which seem to have risen from the lender acquiring Countrywide, Bank of America will continue to handle new loans and the servicing of these loans. Believe it or not with all the bad press the lender has had in the past few months, they still wrote over $306 billion in new mortgages in 2010.
As part of their new strategy they will no longer by writing reverse mortgage and will shift the staff from that business to other mortgage operations. Homeowners who maybe in the middle of taking out a reverse mortgage will be able to continue the process and existing mortgage will still be continued to be serviced.
freeMortgagefix.com offers a FREE service to struggling homeowners who need help applying for the government's Home Affordable Modification program and other loan modification options offered by lenders and servicers. This FREE online software has a 100% no commitment, no credit card required to use their services. Find use full tools and online support to ask your questions about the loan modification process and other concerns about the foreclosure process. Follow us on Facebook and Twitter!
Kym Irving writes exclusively for http://freeMortgagefix.com, however, all articles are based on her experience in this particular industry. She has been in the mortgage and foreclosure industry for over 13 years.
Article Source: http://EzineArticles.com/?expert=Kym_Irving
Article Source: http://EzineArticles.com/5875055
That this subject which we will talk about a very important topic because it will promote your Read this issue
The largest servicing lender in the country has decided to divide their servicing units into two different divisions. A new unit called Legacy Asset Servicing will handle foreclosure files and discontinued loan products. This new division will help handle foreclosure files that may have faulty documents and to help resolve any wrong doing by the lender. It will also handle mortgage modifications and buyback claims on bad home loans sold to investors.
So who will be heading up this new unit at Bank of America? Terry Laughlin who joined Bank of America in July of 2010 as the executive mortgage units handling credit loss mitigation strategist.
Since taking over Countrywide home loans the lending giant has lost over $8.92 billion in 2010 due to some of the toxic loans Countrywide wrote back in the refinance boom. Countrywide was writing one in six of the nations mortgages back in 2006. The California based mortgage company was known for its creative loans, creating a market of subprime and other alternative mortgages. These loans were given to homeowners who did not have the financial ability to pay back those loans and who are now in default. In addition to the continuing of consumer defaults on mortgages, the lending giant is now also facing buyback claims and lawsuits from investors who bought these loans, but are now claiming the lender sold them a bad investment.
Recently Bank of America settled a lawsuit with giants Fannie Mae and Freddie Mac an estimation of $2.6 billion. Some analysts state the lender will still face possibly over $10 billion in additional lawsuits from private buyers.
Bank of America, which is based in Charlotte, N.C., has also been beset with lawsuits related to securities backed by toxic mortgages. In regulatory filings the bank has said it, Countrywide and its Merrill Lynch unit have been named as defendants in suits related to the sales of more than $375 billion in mortgage-backed securities.
Despite all the headaches which seem to have risen from the lender acquiring Countrywide, Bank of America will continue to handle new loans and the servicing of these loans. Believe it or not with all the bad press the lender has had in the past few months, they still wrote over $306 billion in new mortgages in 2010.
As part of their new strategy they will no longer by writing reverse mortgage and will shift the staff from that business to other mortgage operations. Homeowners who maybe in the middle of taking out a reverse mortgage will be able to continue the process and existing mortgage will still be continued to be serviced.
freeMortgagefix.com offers a FREE service to struggling homeowners who need help applying for the government's Home Affordable Modification program and other loan modification options offered by lenders and servicers. This FREE online software has a 100% no commitment, no credit card required to use their services. Find use full tools and online support to ask your questions about the loan modification process and other concerns about the foreclosure process. Follow us on Facebook and Twitter!
Kym Irving writes exclusively for http://freeMortgagefix.com, however, all articles are based on her experience in this particular industry. She has been in the mortgage and foreclosure industry for over 13 years.
Article Source: http://EzineArticles.com/?expert=Kym_Irving
Article Source: http://EzineArticles.com/5875055
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