Nov 13 Bank of America Corp plans to
reduce its mortgage servicing portfolio to about 6 million
loans, down from about 8 million now and 12 million at its peak,
Chief Executive Officer Brian Moynihan said Tuesday.
The No. 2 U.S. bank by assets has been reducing its role in
the mortgage business after taking huge losses on its disastrous
2008 Countrywide Financial acquisition. Servicing mortgage loans
- collecting payments and assisting delinquent homeowners - has
grown more expensive in the housing bust and requires more
capital under new international rules.
"We continue to look at transactions," Moynihan said at an
investor conference in New York. "We have been selling
servicing in relatively sizable chunks to the market."