Bank of America Corp (BAC) to Mortgage Customers: We’re Here for You

Page 1 of 2

As big-bank watchers well know, Bank of America Corp (NYSE:BAC) , has been being beaten up again recently over problems tied to mortgages — specifically, the bank’s alleged behavior toward troubled mortgage borrowers.

While this kind of press tends to perpetuate the notion that B of A will never get over its acquisition of Countrywide and its boatloads of bad loans, this is not truly the case. Even as high-profile cases like the bank’s supposed railroading of homeowners trying to find a way out of their personal mortgage muddle hog headlines, the bank is chugging along, reducing its stable of toxic loans.

Bank of America Corp (NYSE:BAC)

There’s no doubt that Bank of America Corp (NYSE:BAC) is making headway in that regard. A recent Bloomberg article noted that, of the 1.6 million problem loans the bank once had on its books, only 667,000 remain. This has led to reductions in the bank’s Legacy Asset Servicing unit , which corralled the crummy Countrywide loans into a separate department and hired staff to deal with these mortgages — and the borrowers entangled with them. Some estimate the size of this workforce to have been about 59,000 employees.

An ongoing slimming process
So, when B of A announced a combined reduction of 411 workers in two Legacy units located in Texas, it wasn’t a huge surprise. The bank has recently closed a mortgage servicing location in New York state, and both the building lease and a passel of servicing rights were ilding lease and a passel of servicing rights were snapped up by M&T Bank Corporation (NYSE:MTB), a large northeastern regional anxious to get even bigger and more diverse. Prior to that, Bank of America Corp (NYSE:BAC) had laid off more than 50 Legacy unit workers in California, as well as almost 470 in New Jersey.

Although these layoffs appear to be part and parcel of CEO Brian Moynihan’s Project New BAC, other banks, like JPMorgan Chase & Co. (NYSE:JPM) , have also seen their caseloads of bad loans decrease, and have trimmed accordingly. In February, the nation’s largest bank announced that it would slash approximately 14,000 jobs in its mortgage section through the end of next year.

Page 1 of 2

Biotech Insider Alert - $6 Stock To Hit $40

$200 Million Dollar Healthcare Hedge Fund's #1 Best Idea Right Now

The best healthcare hedge fund out there right now is one of the largest shareholders in this biotech stock. The fund returned more than 20% in each of the last 2 years with a virtually fully hedged portfolio, and it's sending out a BUY signal on this biotech stock. Get your FREE REPORT today (retail value of $300)

This is a FREE report from Insider Monkey. Credit Card is NOT required.
Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

The Best Romance Movies of all Time

The Most Wanted Drug Lords

The Oldest Money Managers

The Greatest Directors in the World

Largest Animals in the World

World’s Most Expensive Desserts

Best Selling Comic Books of All Time

A-list Actors who Sabotaged Their Career

Rappers With a College Degree

The Best Jazz Albums of all Time

The Most Influential Jazz Musicians

The World’s Most Famous Photographers

The Best Oscar-Winning Songs

Most Influential Choreographers Ever

Most Expensive Department Stores in the World

The Most Expensive Stolen Paintings in the World

The World’s Most Expensive Teas

Top Oscar Record Holders

The Most Expensive Flowers in the World

Countries With a Booming Film Industry

Most Expensive Cupcakes in the World

Uncommon European Escapes

The Most Stolen Artists in History

Best Travel Destinations in Australia

World’s Most Expensive Musical Instruments

World’s Most Famous Animals

Most Expensive Cakes in the World

Most Expensive Kosher Champagne in the World

Most Expensive Kosher Wine in the World

The Most Surprisingly Dark Fairy Tales

Most Popular Travel Destinations in Asia

The 10 Most Expensive Dresses Ever Worn to the Oscars

World’s Most Visited Art Museums

Best Countries for Photographers to Work in

Best Paid Jobs in the Film Industry

The Most Renowned Recovered Paintings Ever

Child Stars That Turned out Just Fine

Books That Were Banned in the Past Century

World’s Richest Dancers

Best Remedies against Bad Breath

Foods That Improve Your Skin Texture

Best-Selling Children’s Books of all Time

Foods That Boost Your Libido

Best-Selling Books of all Time

The Most Expensive Academy Awards Jewelry in History

Most Expensive Japanese Restaurant In New York City

The Best B-Boy Movies

Most Awesome Hip Hop Documentaries

Foods That Stain Your Teeth

Richest Doctors in the World

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 129% in 2.5 years!! Wondering How?

Download a complete edition of our newsletter for free!