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boa selling mortgages

How will boa selling servicing rights to 400 billion in mortgages affect you.
Mine sold a couple months ago.
Had a BOA mortgage for about 10 years.

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How does the servicer make ita $$$?

KYBOSH said:   How does the servicer make ita $$$?
The servicer is compensated through a servicing fee that is stripped from the mortgage coupon. Generally 25 bps. A mortgage servicing right is basically an interest-only cash flow stream with a value driven by prepay and default speeds.

And they charge all kinds of fees to both the homeowner and the mortgage owner, particularly in the event a foreclosure (or a threatened foreclosure). This has been one of the reasons HARP wasn't as successful as the administration had hoped--servicers dragged their feet because they had no interest in letting homeowners off the hook. They weren't the owners of the mortgage note, and they were racking up late fees for every month the homeowners didn't pay.

And that's just one way they made money that came to light since 2008. I'm certain there are other ways.

I do have BOA mortgage since 2003. How do I know if it was sold?
I pay through BOA website, so they are at least servicing it still - right?

if it is sold, it will disappear from boa website, and you will get a letter in the mail, telling you the new servicer.

One of my rental mortgages was sold to Nationstar a few months ago. They really, really want me to refinance. I get letters from them several times a month telling me I should refinance.

Will be interesting to see how this all pans out.

jamesboy said:   KYBOSH said:   How does the servicer make ita $$$?
The servicer is compensated through a servicing fee that is stripped from the mortgage coupon. Generally 25 bps. A mortgage servicing right is basically an interest-only cash flow stream with a value driven by prepay and default speeds.


So if someone has a 2.5% 15 year mortgage, the note holder only gets 2.25% interest while the servicer walks away with .25%?

Does the servicer make out big if someone prepays 100k? The servicer's cash stream ends in default?

althes said:   if it is sold, it will disappear from boa website, and you will get a letter in the mail, telling you the new servicer.

Not disappeared from the web site yet but got a letter in the mail today that February 16 Nationstar is taking over. So what to expect?

Just paid Feb payment to BoA. Not looking to be sold, again.

MoneyOCD said:   althes said:   if it is sold, it will disappear from boa website, and you will get a letter in the mail, telling you the new servicer.

Not disappeared from the web site yet but got a letter in the mail today that February 16 Nationstar is taking over. So what to expect?


It will disappear in a few days and a letter from the new servicer in a few weeks.
Any payments you make before it dissappears will be moved to the new servicer so you don't have to worry.

You will also get a 1098 from boa for interest paid to them for this year.

althes said:   MoneyOCD said:   althes said:   if it is sold, it will disappear from boa website, and you will get a letter in the mail, telling you the new servicer.

Not disappeared from the web site yet but got a letter in the mail today that February 16 Nationstar is taking over. So what to expect?


It will disappear in a few days and a letter from the new servicer in a few weeks.
Any payments you make before it dissappears will be moved to the new servicer so you don't have to worry.

You will also get a 1098 from boa for interest paid to them for this year.


Logged in today to BoA amd no mortgage listed
Still no letter from Nationstar and my payment due date is March 1 - next week. What if I will not get letter with instructions on how/where to pay by due date?

ETA: poked around their website, there is an option to register using your prev account #, tried but it said can not find matching record.

Maybe you fell through the cracks(?). Theoretically, if nobody is looking to collect, why pay? In reality.....

MoneyOCD said:   althes said:   MoneyOCD said:   althes said:   if it is sold, it will disappear from boa website, and you will get a letter in the mail, telling you the new servicer.

Not disappeared from the web site yet but got a letter in the mail today that February 16 Nationstar is taking over. So what to expect?


It will disappear in a few days and a letter from the new servicer in a few weeks.
Any payments you make before it dissappears will be moved to the new servicer so you don't have to worry.

You will also get a 1098 from boa for interest paid to them for this year.


Logged in today to BoA amd no mortgage listed
Still no letter from Nationstar and my payment due date is March 1 - next week. What if I will not get letter with instructions on how/where to pay by due date?

ETA: poked around their website, there is an option to register using your prev account #, tried but it said can not find matching record.


Send a payment to BOA for your old loan number, by mail or using bill pay. They'll keep accepting your payments (and have it transferred over) for a month or two at least.

I just got 1 of my mortgages switched from B of A to Greentree. It's on my primary and it goes into affect on 4/1.

What worries me though is I just did a HARP refi on my investment property which is still being serviced by B of A. It was incredibly easy. I went from a 6.5% 30 year, to a 3.1% 15 year.

So when I called about asking to do a HARP refi on my primary, that's when I find out that B of A no longer holds my loan.

Which I'm thinking could be a good thing or a bad thing.

Good due to the fact that my 2nd I have on my primary was transferred to Greentree a year ago or so. If B of A still had my loan on my primary, who knows, I may have not been able to HARP refi it since Greentree has the 2nd on it.

But now that Greentree has both the 1st and the 2nd on my primary, maybe it'll be a smoother transaction than what it might have been had B of A still had the 1st on it.

I'll find out here in a couple of weeks. When I call up Greentree and ask them about doing a HARP refi on their newly acquired mortgage of mine.

Hopefully I can get a great rate like I did with B of A on my investment property.

theassmanbot said:   I just got 1 of my mortgages switched from B of A to Greentree. It's on my primary and it goes into affect on 4/1.

What worries me though is I just did a HARP refi on my investment property which is still being serviced by B of A. It was incredibly easy. I went from a 6.5% 30 year, to a 3.1% 15 year.

So when I called about asking to do a HARP refi on my primary, that's when I find out that B of A no longer holds my loan.

Which I'm thinking could be a good thing or a bad thing.

Good due to the fact that my 2nd I have on my primary was transferred to Greentree a year ago or so. If B of A still had my loan on my primary, who knows, I may have not been able to HARP refi it since Greentree has the 2nd on it.

But now that Greentree has both the 1st and the 2nd on my primary, maybe it'll be a smoother transaction than what it might have been had B of A still had the 1st on it.

I'll find out here in a couple of weeks. When I call up Greentree and ask them about doing a HARP refi on their newly acquired mortgage of mine.

Hopefully I can get a great rate like I did with B of A on my investment property.




Just to update this...

I called up GT the other day to try and get a HARP refi done on my property. Took a few calls to get through though due to being on hold for so long and then my call getting dropped! WTH! I finally got through and was immediately told I have to apply online for a HRAP refi, I CANNOT call them! WTH AGAIN! Why can't I call my mortgage company to talk about MY LOAN with THEM? Oh I guess it's because they don't want to talk to their customers????

Anyways, I filled out the form online and initiated my request for a HARP refi. Got my response back via email saying that "There is no program" for me WTH!!!!!!!! There's no reason why my home does not qualify for a HARP refi, and to say there is no program available is just an easy way to get out of trying to offer me any help.

So now i realize I'm screwed. My problem is my DTI is too high right now. It's around 70%. And the only reason it is that high was due to my rental home not collecting a full years rent last year. I lost about $14,000 on it.

So I have no choice but to ride it out it seems and once I get my DTI lowered, I can do a HARP refi with someone else. The new problem I see with that though is GT owns the 2nd on my home in addition to the 1st. What's to stop them from not agreeing to subordinate my 2nd since in do9ing so, they will lose out on servicing my 1st with them?????

Yes, so far, greentree is the worst services I have ever had in 6 service companies. They are terrible. As if I didn't have enough reasons to sell the property they hold...

BOA is not selling their mortgages, instead they are hiring another company to service them. Hence, to add to your confusion you will now have to deal with two companies rather than one.

Was hoping someone here could take a minute and do me a HUGE HUGE favor...

For those of you who just recently had their loans moved to another servicer from B of A in the last month or so, could you please check either Fannie Mae's loan look up site or Freddie Mac's site and see if they still list B of A as the owner of your mortgage? Mine was transferred to GT as I said earlier, and yet Fannie Mae's site still says that B of A still owns my loan. I'm just wondering if that might be the reason why GT is saying that they "Have no program available" for me when I contact them for a HARP refi.

Here's Fannie Mae's look up site... Fannie Mae

Here's Freddie Mac's look up site... Freddie Mac

Thanks!!!

BradMajors said:   BOA is not selling their mortgages, instead they are hiring another company to service them. Hence, to add to your confusion you will now have to deal with two companies rather than one.

So B of A still owns my loan but as of April 1st, Green Tree is my new servicer.

So if I were interested in doing a HARP refi, which 1 should I contact? According to Fannie Mae's loan look up tool, B of A still owns my loan. I've contacted GT to look into a HARP refi but I get an automated email from them saying "They have no program" available for me.



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