After Ginnie Mae stopped the transfer of mortgage-servicing rights from Bank of America (BAC) to a nonbank, Bank of America emphasized that its servicing portfolios are on par with market requirements.
“In the normal course of business, we sell segments of our existing servicing portfolio on standard market terms, which include providing all required documents to subsequent servicers and complying with investor and other requirements,” a Bank of America spokesperson said in general on the banks servicing business.
American Banker writer Kate Berry broke the story (Paywall) Tuesday afternoon, saying Ginnie Mae halted the transfer due to missing documents and is asking for an inventory of loans with missing documents.
“Most of the portfolios we sell include a number of delinquent loans where documents have been transmitted to attorneys, as legally required, which may complicate these pre-sale review requirements,” Bank of America said in response.
Ginnie Mae confirmed the details of the American Banker account.