Issa launches probe of Fannie, BofA mortgage servicing deal

Rep. Darrell Issa, chairman of the House Oversight and Government Reform Committee, opened an investigation into the reported Fannie Mae purchase of a Bank of America mortgage servicing portfolio…

“Some commentators have labeled this transaction as a back-door bailout of BofA by permitting the bank to shift part of its risky portfolio to American taxpayers. Under these circumstances, I am unclear why the Federal Housing Finance Agency allowed Fannie to proceed with the transaction,” Issa wrote…

BofA’s response?

“Bank of America periodically sells mortgage servicing rights (MSR) or transfers mortgage-related assets to third party business partners,” a BofA spokesman said. “This is a commonly accepted, industry-wide practice that many mortgage loan servicers, including Bank of America, have engaged in for many years.”

Oh, I guess since it is a “commonly accepted, industry-wide practice” it is all legal and stuff…

Geez, that’s the only answer they can seem to come up with lately…

Full letter below…

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4closureFraud.org

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Issa Letter to DeMarco RE Fannie BofA Deal