Bank of America Corp is in talks to sell collection rights on $300 billion of mortgages, two sources familiar with the situation said, in an effort to offload problem exposure after huge losses from its Countrywide Financial acquisition.Ocwen Financial Corp, Nationstar Mortgage Holdings and Walter Investment Management Corp are among the firms that are in talks to purchase a portion of the assets, said the sources, who declined to be identified because they are not permitted to speak to the press.The assets that Bank of America is looking to sell -- known as residential mortgage servicing rights -- have become increasingly onerous for banks to hold onto. The rights allow banks to earn fees from mortgage investors in exchange for collecting home loan payments from borrowers. The housing bust has made collecting mortgage payments an expensive business, as borrowers go delinquent and into foreclosure.New capital rules will also make mortgage servicing rights more expensive for banks to hang onto, so at least some of the assets are migrating toward non-bank companies like Ocwen, Nationstar, and Walter Investment Management.
Bank of America Corporation (Bank of America) is a bank holding company, and a financial holding company. Shares of BAC traded higher by 1.25% or $0.15/share to $12.11. In the past year, the shares have traded as low as $6.19 and as high as $12.15. On average, 158364992 shares of BAC exchange hands on a given day and today's volume is recorded at 132591016.
Nationstar Mortgage Holdings Inc. is a non-bank residential mortgage servicer with a range of services across the residential mortgage product spectrum. Shares of NSM traded higher by 6.13% or $1.92/share to $33.23. In the past year, the shares have traded as low as $13.00 and as high as $37.20. On average, 1508430 shares of NSM exchange hands on a given day and today's volume is recorded at 3054272.
Walter Investment Management Corp., together with its subsidiaries, is a fee-based business services provider to the residential mortgage industry. Shares of WAC traded higher by 4.36% or $1.84/share to $44.05. In the past year, the shares have traded as low as $17.87 and as high as $48.54. On average, 808866 shares of WAC exchange hands on a given day and today's volume is recorded at 2455796.
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