Bank of America recently confirmed that it would reorganize itself to provide better services to their clients and engage the money market well. This move involves the bank’s splitting into two units. The original unit would be retained but it would be supported by a new division that would handle foreclosures and discontinued loans.
Bank of America dubbed the newly created division as the Legacy Asset Servicing. The Legacy is mandated to resolve issues concerning faulty paper works which caused the bank a lot of losses. This is because Bank of America was forced to suspend most of its foreclosures in the 50 states in the US due to faulty paper works last October.
Although the foreclosure activities had resumed by December, there were reports that Bank of America lost an estimated amount of about $8.92 billion because of faulty paper works. Due to this, the company decided to undergo reorganization.
In addition to this, Legacy would also be handling modifications of the mortgages provided by Bank of America. This function also involves dealing with buyback claims from investors who purchased bad home loans.
Legacy would be placed under the leadership of Terry Laughlin. Laughlin joined Bank of America last July 2010 as the executive who would handle Legacy’s strategies in mitigating credit loss. Most financial experts view this as a bold move to engage the current money market.
Finally, Bank of America’s reorganization is considered as just another management shifts that its latest CEO Brian Moynihan wants to implement since his appointment last January 2010.
Tags: Legacy Asset Servicing, Bank of America, money market, mortgage
