This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Bank of America Scrambling for the Mortgage Servicing Exits

NEW YORK ( TheStreet) -- Bank of America (BAC - Get Report) may speed up its sale of its mortgage servicing portfolio, according to a report published Thursday by Sterne Agee analyst Henry Coffey on mortgage servicer Nationstar Mortgage Holdings. (NSM - Get Report).

"For most of the last 18 months, Bank of America...has been periodically selling larger blocks of servicing and selling/subservicing $10-$20 billion blocks of servicing on a quarterly basis," Coffey writes. "In the third quarter the company transferred $19 billion in servicing. Various industry sources have indicated to us that they expect Bank of America to accelerate this process."

An email message to Bank of America spokespeople seeking comment on the report wasn't returned.

Coffey added Nationstar to a "catalyst buy list," as a result of this information, while maintaining his overall "neutral" rating on Nationstar, which is majority-owned by Fortress Investment Group (FIG - Get Report).

Nationstar has been competing with other independent servicers to buy mortgage servicing assets as many companies have been moving out of the business. In one recent deal, Nationstar and Berkshire Hathaway lost out to Ocwen Financial in a bid for the servicing portfolio of Residential Capital, the mortgage unit of the former GMAC.

Wells Fargo appeared to be the only one of the big four U.S. banks interested in growing its servicing businesses, since new bank capital rules are more punitive toward mortgage servicing . However, JPMorgan Chase signaled it remains interested in growing mortgage servicing when it acquired a $70 billion portfolio from MetLife.

-- Written by Dan Freed in New York.

Disclosure: TheStreet's editorial policy prohibits staff editors, reporters and analysts from holding positions in any individual stocks.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
BAC $15.56 0.00%
FIG $8.41 0.00%
NSM $25.32 0.00%
AAPL $124.75 0.00%
FB $80.78 0.00%

Markets

DOW 17,826.30 -279.47 -1.54%
S&P 500 2,081.18 -23.81 -1.13%
NASDAQ 4,931.8150 -75.9760 -1.52%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs