Add this to the list of reasons banks are losing their appetite for servicing the mortgages they underwrite: Bank of America (BAC), Citigroup (NYSE: C) and JPMorgan Chase (JPM) all flunked Fannie Mae's test of mortgage servicers, failing to meet even the minimum requirements for performance in 2012, according to a report Fannie released Tuesday.

Wells Fargo (WFC) and Ally Bank both received the equivalent of a "C" grade, signifying an average level of performance relative to their peers.

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