Mortgage

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).

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Caliber Home Loans CEO Sanjiv Das steps down

Sanjiv Das, CEO of Caliber Home Loans, is stepping down as CEO of the company, less than one year after New Residential Investment Corp. (Newrez) acquired the mortgage lender and servicer, sources familiar with the situation confirmed. 

3d rendering of a row of luxury townhouses along a street

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