For several months Fannie Mae has insisted that it's not in the servicing business, but a recent 10-Q filing by the government-owned GSE reveals that it agreed to buy $74 billion of MSRs from Bank of America in the third quarter. No purchase price was disclosed.
This week a BofA spokesman confirmed the deal, citing the Securities and Exchange Commission (SEC) filing.
A Fannie Mae spokeswoman declined to comment, but noted that the GSE will continue to yank servicing rights away from firms that perform poorly on loss mitigation “to help minimize credit losses.”
When asked how many MSR portfolios the GSE has seized over the past two years she declined to comment.
The BofA package has delinquencies of between 16% and 20%, sources said.
Fannie does not service problem loans itself instead using five or so subservicers to handle such chores including Green Tree Servicing, Nationstar Mortgage, and Seterus, a division of IBM.
Servicing advisors familiar with the package said the transaction has closed and the rights have been transferred.
As a policy, Fannie does not confirm which vendors it uses.