Unbelieveable!
The servicing rights are not the same as the mortgage. They are a separate stream of revenue from the actual mortgage repayments. It is a service provided by the servicer to the mortgage owner, for a fee of course. Early in the article, it says that the mortgages in question are owned by Fannie.
I’m not sure what’s going on here, but it isn’t the transfer of $74 Billion. More likely, the guv is looking for someone who charges less for the servicing. Maybe they are mad at BAC for the way it’s been handling foreclosures on their behalf through the RoboSigner foreclosure shops and lawyers that have popped up and caused bad publicity.
We were already on the hook for these loans, they have just stopped BOA from servicing them. Send newt a thank you note.