Well, finally Bank of America has decided to settle down all the foreclosure issues and have made it known to the public by proclaiming recently that it is establishing a mortgage unit termed as "Legacy Asset Servicing" group. Owing to the innumerable legal glitches and foreclosure suspension, Bank of America has felt a need to create an exclusive unit managing and tackling issues related to the 1.3 million felonious loans.
Reportedly this latest mortgage unit will comprise of 55,000 workers and will also be managing the regular mortgages which by now constitute 12 million new mortgages. However, the bank has clearly stated that it is going to back off from the reverse mortgage market in order to give their full attention to the other vital fields. Nevertheless, this does not imply that the workers will be left searching for other jobs in fact the employees working in that section will be adjusted to other fields and eventually be assigned new appointments.
Ever since Bank of America taken over one f the renowned and biggest mortgage enterprises, Countrywide Financial Corporation back in 2008, it has been encountering issues of some sort or another. Actually the company witnessed a crash during the mortgage meltdown and Bank of America consequently had to sort out a big mess consequently. For instance, the bank's mortgage unit in 2010 lost around $8.9 billion owing to the deadly loans bought from the Countrywide.
This eventually caused the Bank of America lose mortgage shares exponentially. The market witnessed a fall from 21.6% that it enjoyed earlier in 2010, down to 19.5% by the closing of the year and the bad news is that this percentage is going to decrease even more in this year. So keeping all this in view, the decision of establishing a new mortgage unit seems to be wise one.
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