Bank of America (NYSE:BAC) Creates Special Foreclosure Unit

Bank of America (NYSE:BAC) announced it is dividing its mortgage business into two separate units, with the new division, named Legacy Asset Servicing unit, focusing entirely on discontinued loan products and foreclosures.

One of the responsibilities of the unit within those parameters is to deal with issue in regard to faulty paperwork, which resulted in an embarrassing need to suspend foreclosures in all the states until the problem was resolved.

The new unit will also work on buyback claims on home loans gone sour and mortgage modifications. Heading up the new unit will be Terry Laughlin.

Bank of America Home Loans will still have as its primary focus the issuance of new loans and servicing them, i.e. collecting current monthly payments.

In a regulatory filing, Bank of America said they wrote $306 billion in new mortgages during 2010, and starting in 2011 was servicing about $2.06 billion in mortgages.

Bank of America closed Friday at $14.29, down $0.14, or 0.97 percent.