Urban Settlement Services of Pittsburgh (USS), a loan modification specialist, is talking to Bank of America and Fannie Mae about possible contracts, according to one executive close to the vendor.
At press time USS executives Jim Smith and Charles Sanders had not returned telephone calls about the matter. It is unclear how large the contract might be or how many delinquent residential loans could be involved.
"It's a deal where Bank of America and Fannie will use them to perform loan modifications" said the source. BoA inherited a huge portfolio of delinquent subprime, Alt-A and home equity loans last summer when it bought Countrywide Financial Corp. of Calabasas, Calif.
A Fannie Mae source said he could not speak about what vendors the GSE is talking to in regard to contracts, but noted that loss mitigation is a growth area for the company.