With ResCap Auction Done, B of A May Step Up MSR Sales

Bank of America, which is already an active seller of MSRs, is expected to step up its disposition of servicing-related assets now that the Residential Capital Corp. auction is complete, according to industry advisors and investors involved in the market.

“They’ve been waiting for ResCap to be completed and now that it is, we’ll see more from them – maybe a lot more,” said one investor who spoke on the issue and requested that his name not be published.

As reported by National Mortgage News, B of A was recently out in the market with a $14 billion MSR package dubbed ‘Hollywood.’ The bank declined to comment on that auction and has said little publicly about its disposition plans, though B of A executives in earnings conference calls have admitted they are a seller of servicing rights.

The Hollywood auction is due diligence now, said one source. Phoenix Capital, Denver, has been B of A’s advisor on the sales and like the bank has not commented about its activities.

In August the bank had a $7 billion MSR package in the market.