Bank of America is trying to sell a $10 billion chunk of Freddie Mac mortgage servicing rights, after failing to unload a larger $50 billion package of MSRs, according to industry officials.
Servicing executives familiar with the matter said at least five investors expressed interest in the $50 billion package but the bids were deemed too low. “Now there's a $10 billion piece that they're trying to sell,” one official said.
Bayview Asset Management, Miami, has been mentioned as a bidder on the $10 billion piece. Early Wednesday morning a Bayview official had not returned a telephone call.
Meanwhile, The Wall Street Journal reported that Fannie Mae has agreed to buy $73 billion of MSRs from BofA – for $500 million. But a Fannie spokeswoman told National Mortgage News: “Fannie Mae does not service loans but has a history of facilitating transfers of portfolios to high touch servicers in an effort to mitigate credit losses.”
Fannie, like Freddie, has a stable of subservicing contractors that processes loans for the GSE. One of Fannie's largest subservicers is IBM Lender Business Process Services.