Chillin' out till it needs to be funded
Staving the servicing cost of undocumented Loans?
Part of its servicing branch, the 400,000 mortgages with an unpaid principal of $73 bln will be passed to Fannie Mae in four monthly slugs of 100,000 mortgages each It is unclear as to the discount on the portfolio as BofA still nets $500 mln from Fannie Mae for the transaction.
This particular tranche probably helps BofA to also remove such unwanted loans with incomplete documentation which have been whittling away at a fast clip since 2008 as the “bad bank” in most banks. BofA’s target was to reduuce such unwanted loans by half on its balance sheet
AIG started a new litigation this week asking BofA to pay it $10 bln for its $28.5 bln portfolio for which BofA was the issuing principal