Bank of America reduces legacy servicing costs
According to Seeking Alpha, Bank of America (BAC) is expected to reduce its legacy mortgage servicing costs, estimating that its LAS expenses — excluding litigation — to fall below $2 billion by the fourth-quarter.
Bank of America's Legacy Asset Servicing costs are expected to drop to a normalized run rate of $500 million per quarter by the end of 2015, says KBW's Chris Mutascio after a meeting with the bank's CFO Bruce Thompson. This compares to $2.3 billion in Q2 of this year. Annually, this is $7.2B in savings over the next 2 years and beyond (mostly by way of layoffs as the beefed-up staff hired to deal with non-performing mortgages is cut).