Nine subservicing firms this week received approval to handle loans underlying Bank of America-owned Countrywide RMBS as part of a proposed $8.5 billion settlement.
The subservicers named are Bayview Loan Servicing LLC, Residential Credit Solutions Inc., Resurgent Capital Services LP (d/b/a Resurgent Mortgage Servicing), Nationstar Mortgage LLC, Specialized Loan Servicing LLC, Select Portfolio Servicing Inc., Vantium Capital Inc. (d/b/a Acqura Loan Services), Greentree Servicing LLC and FCI Lender Services Inc.
All subservicers are approved for up to 30,000 loans and some are temporarily subject to an initial cap on the number of loans they can service at one time. Caps may be lifted if a particular subservicer meets identified targets and passes required reviews.
“It makes sense to have these loans in the hands of specialty loan servicers who have a track record of quickly working out delinquent loans,” Gordon Albrecht, executive vice president and chief strategy officer at FCI Lender Services Inc., told this publication. “The issue of nonperforming loans is far bigger than just this settlement. Hopefully the industry and the regulators will take note.”
The proposed settlement is related to alleged breaches of servicing obligations as well as alleged breaches of certain representations and warranties.
