Fannie Mae Deal 'Modestly Beneficial' for Bank of America (BAC)
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Goldman Sachs Lifts Numbers on Bank of America (BAC) Following Fannie Mae Settlement
January 7, 2013 3:32 PM ESTGoldman Sachs raised estimates and its price target on Bank of America (NYSE: BAC) from $12 to $12.50 following today's settlement with Fannie Mae and sale of servicing rights for 2 million loans. The firm maintained a Neutral rating.
Goldman sees the announcements as a positive for EPS as: "(1) the... More
Fitch Positive on BofA (BAC) Mortgage Settlement with Fannie Mae (FMNA)
January 7, 2013 2:00 PM ESTFitch Ratings believes Bank of America's (NYSE: BAC) recently announced settlement with Fannie Mae (OTCBB: FNMA) is overall positive for the company. The settlement amount is below Fitch's expectations under various stress scenarios. Fitch believes this settlement substantially addresses BAC's exposure to mortgage repurchase obligations from FNM and addresses much of the uncertainty related to this exposure.
Fitch believes BAC's total consideration to FNM... More
Nationstar (NSM) to Acquire $215B of MSRs from BofA (BAC) in $1.3B Deal
January 7, 2013 7:51 AM ESTNationstar Mortgage Holdings Inc. (NYSE: NSM) (Nationstar) announced today that Nationstar Mortgage LLC, a wholly-owned subsidiary, has signed a definitive agreement to acquire approximately $215 billion in residential mortgage servicing rights (MSRs), as measured by unpaid principal balance (UPB) as of November 30, 2012, and certain other assets from Bank of America (NYSE: BAC).
Approximately 47% of the servicing portfolio, as measured by UPB, consists of loans that are owned, insured or... More
Newcastle (NCT) to Acquire MSRs from Nationstar (NSM) in $610M Deal; Will Spin-Off Residential Assets
January 7, 2013 7:47 AM ESTNewcastle Investment Corp. (NYSE: NCT) has agreed to acquire an interest in Excess Mortgage Servicing Rights (Excess MSRs). The total unpaid principal balance (UPB) of the underlying loans was approximately $215 billion as of November 30, 2012. In a separate transaction on January 4, 2013, Newcastle acquired an interest in the Excess MSRs on a $13 billion Ginnie Mae pool. These transactions are expected to bring Newcastles total investment in Excess MSRs to approximately $610 million and the UPB of the underlying loans to over $310 billion. Newcastle intends to spin off these and certain other residential assets, as described below.
Excess MSR... More
Walter Investment (WAC) to Acquire $93B of MSRs in $519M Deal (FNMA) (BAC)
January 7, 2013 7:44 AM ESTWalter Investment Management Corp. (AMEX: WAC) has signed a definitive agreement to acquire approximately $93 billion of unpaid principal balance ("UPB") of Fannie Mae (OTCBB: FNMA)-backed residential servicing assets, including related advance receivables of approximately $1 billion, from Bank of America (NYSE: BAC). The purchase price for the mortgage servicing rights ("MSRs") of $519 million represents a multiple of approximately 2.05x the 27 basis point base contractual servicing fee of the portfolio. The related advance receivables will be purchased at par. The purchase price will be subject... More
BofA (BAC) Enters Settlement w/ Fannie Mae on Residential Loans; Sees Q4 Impact
January 7, 2013 7:32 AM ESTBank of America (NYSE: BAC) announced agreements with the Federal National Mortgage Association (OTCBB: FNMA) to resolve outstanding and potential repurchase and certain other claims relating to the origination, sale and delivery of substantially all residential mortgage loans originated and sold directly to Fannie Mae from January 1, 2000 through December 31, 2008 by entities related to Countrywide Financial Corporation (legacy Countrywide) and Bank of America, National Association (BANA).
In addition, Bank of America announced that it signed definitive agreements to sell the servicing rights on 2.0 million residential mortgage loans totaling approximately $306 billion,... More
