Bank of America Corp.’s bank subsidiary this week unloaded mortgage servicing rights on more than 30,000 home loans.
Bank of America, N.A., closed on the sale of the MSRs on Dec. 15. The 31,000 underlying loans are included in residential mortgage-backed securities.
The RMBS transactions were issued off of subprime RMBS shelves. The impacted transactions include FFML 2005-FFH3, FFML 2005-FFH4 and FFML 2006-FFH1.
The issuer of the loans, First Franklin Mortgage Loan Trust, was a unit of Merrill Lynch, which BofA acquired in 2008.
The unpaid principal balance of the loans was $5.5 billion as of May 31.
The buyer of the MSRs, Select Portfolio Servicing Inc., was already sub-servicing the loans.
Fitch Ratings, which reported the sale, said that it has rated SPS at RPS1- as a primary servicer for Alt-A, subprime, and closed-end second lien mortgages.
SPS was previously known as Fairbanks Capital Corp., which was incorporated in 1989. It is owned by Credit Suisse (USA).
Salt Lake City-based SPS serviced 300,312 loans for $55.1 billion as of May 31, according to data from Moody’s Investors Service.
