The nation’s biggest residential servicer is consolidating two subprime servicing operations into its primary platform.
Loans serviced under the First Franklin brand and the NationsPoint brand will be transferred to the Bank of America Home Loans servicing platform, a statement Thursday from the company indicated.
Mortgages are serviced through BAC Home Loans Servicing LP.
Around 140,000 borrowers are being notified about the servicing transfer.
The move is planned for next month.
The Calabasas, Calif.-based company says it is “the nation’s largest residential mortgage servicer.” Roughly 13 million loans are in its servicing portfolio.
BofA previously reported a mortgage servicing portfolio of $1.706 trillion as of June 30.
Home Loan Services, the Pittsburgh-based unit that is losing the servicing, will be re-branded as BofA, and operations at the facilities will be shifted to default management processes and services.
“This change will significantly expand the bank’s capabilities to serve financially distressed borrowers in finding solutions that best fit their situation,” the statement said.
BofA picked up the servicing operations when it acquired Merrill Lynch & Co. Inc. on Jan. 1, 2009.
Merrill also owned special service Wilshire Credit Corp., which has since been acquired by IBM-subsidiary Lender Business Process Services Inc. It additionally had an interest in Ownit Mortgage Solutions, which was among the first high-profile subprime mortgage lenders to fail.
