Bank of America Transferring Millions of Its Loans Causing Confusion for Customers
Bank of America is selling off millions of its mortgages. In an effort to streamline the company and become more profitable, Bank of America CEO Bryan Moynihan launched his Project New BAC initiative which includes laying off more than 16,000 jobs by the end of the year, 3,200 of which will be in its mortgage origination unit. With this major cut in its workforce Bank of America is selling off more than half of its mortgages to new mortgage servicers.
Bank of America has sent letters out to many of their current mortgage customers informing them of the change, but they haven’t been given a lot of notice of the transfer, in some cases just a couple of weeks.
See an example of this Bank of America letter here.
Many customers are wondering why their loan is getting transferred, or if the terms of the loans will be different from their original loan terms. According to the letters, the terms and conditions of the loans are not being changed. But customers will no longer have access to their loans through the Bank of America website and won’t be able to make payments at any of the Bank of America banking centers.
This is bound to cause confusion as many customers unaware of the change may still send payments to Bank of America rather than their new named servicer. Keep in mind that according to the Real Estate Settlement Procedures Act outlined in the letter, during the 60 day period following the effective date of the transfer, a loan payment received by Bank of America before its due date may not be treated by the new loan servicer as late.
Author Bio: Rob Alley earned a bachelors degree at Virginia Tech, in Blacksburg, VA in Biology. Rob Alley consults with homeowners regarding Real Estate transactions and speciliazes in listing and selling Charlottesville Real Estate. Realtor/Owner of Virginia Real Estate Solutions at RE/MAX Assured Properties
Charlottesville Real Estate Experts
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Bank of America has sent letters out to many of their current mortgage customers informing them of the change, but they haven’t been given a lot of notice of the transfer, in some cases just a couple of weeks.
Many customers are wondering why their loan is getting transferred, or if the terms of the loans will be different from their original loan terms. According to the letters, the terms and conditions of the loans are not being changed. But customers will no longer have access to their loans through the Bank of America website and won’t be able to make payments at any of the Bank of America banking centers.
This is bound to cause confusion as many customers unaware of the change may still send payments to Bank of America rather than their new named servicer. Keep in mind that according to the Real Estate Settlement Procedures Act outlined in the letter, during the 60 day period following the effective date of the transfer, a loan payment received by Bank of America before its due date may not be treated by the new loan servicer as late.
Author Bio: Rob Alley earned a bachelors degree at Virginia Tech, in Blacksburg, VA in Biology. Rob Alley consults with homeowners regarding Real Estate transactions and speciliazes in listing and selling Charlottesville Real Estate. Realtor/Owner of Virginia Real Estate Solutions at RE/MAX Assured Properties
Charlottesville Real Estate Experts
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