Bank of America over the past 10 days tried – and failed – to sell roughly $50 billion of 'legacy' mortgage servicing rights, according to servicing advisors familiar with the auction.
“The portfolio didn’t trade,” one servicing analyst told National Mortgage News. The analyst, who requested his name not be used, added that B of A “is still working on it, but they weren’t happy with any of the bids.”
The package – which has been described as “high touch” servicing -- is expected to be offered again.
B of A has declined to discuss the sale, or its size. As reported on the NMN website ten days ago, the MSR package was initially thought to be in the $40 billion range, but new information suggests it’s $10 billion higher.
Sources said Freddie Mac, which is controlled by the government, has been pushing for the sale.