Tuesday, February 8, 2011

Bank of America forms unit for foreclosures

NEW YORK – Feb. 7, 2011 – Bank of America Corp. on Thursday said it is splitting its mortgage business into two units, with a new division created specifically to handle foreclosures and discontinued loan products.

The bank said the new Legacy Asset Servicing unit will be responsible for resolving issues involving faulty paperwork that led Bank of America to suspend foreclosures in all 50 states in October. After reviewing procedures, it resumed the actions nationwide in December.

The legacy unit will also handle mortgage modifications and buyback claims on bad home loans sold to investors. It will be led by Terry Laughlin, who joined Bank of America in July 2010 as an executive in its mortgage unit handling credit loss mitigation strategies.

The move is the latest in a series of management shifts since Brian Moynihan took over as CEO in January 2010.

Copyright © 2011 The Associated Press, Eileen A.J. Connelly, AP business writer. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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