Bank of America Offering $7 Billion of MSRs

Bank of America, as part of a continuing effort to reduce its residential exposure, is offering roughly $7 billion of mortgage servicing rights through what’s being called a ‘Barbell’ auction.

Investors and brokers familiar with the sale say half the MSRs are performing, the other half delinquent.

A handful of private equity investors have been given the offering book for review, said sources familiar with the transaction.

A B of A spokesman did not respond to a media inquiry about the auction which is scheduled to take place Thursday.

Over the past year B of A has reduced its MSR portfolio by 17%.