A $250 million writedown of mortgage servicing rights by the new BankAmerica Corp. stunned some observers, but others said big hits are now inevitable, given the consolidation in the loan-servicing business.

The writedown, which appears to be the largest accounting adjustment ever made on a portfolio of servicing rights, was among the most unexpected pieces of bad news in the newly formed giant's initial earnings announcement earlier this week.

Limited Time Offer

Save $400 off your subscription. Special offer ends April 30, 2017.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.