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Bank of America Corp., the second- biggest U.S. bank, said profit declined 43 percent as it spent $4 billion to cover litigation costs, including a mortgage settlement with American International Group Inc.
July 16
Bank of America completed a $2.1 billion bulk sale of nonperforming home loans in the second quarter, and is almost done with such dispositions, said Chief Financial Officer Bruce Thompson.
"We got one more sale to wrap up this quarter," Thompson said Wednesday morning on a conference call to discuss B of A's second-quarter results. "But beyond that one transfer this quarter, we are largely at the end of servicing sales."
The Charlotte, N.C., banking company has reduced its residential servicing portfolio to $760 billion as of June 30, down 23% from a year earlier. That's a far cry from the end of 2008, when the bank oversaw more than $2 trillion of mortgages following the disastrous acquisition of Countrywide Financial.
From now on, the size of B of A's servicing portfolio will be determined by runoff and new originations.
B of A currently has 263,000 first mortgages that are 60 days for more past due, down from 492,000 delinquent loans in the second quarter of 2013.
