Bank of America's Attitude Problem Will Be Its Downfallhttp://www.fool.com/investing/general/2013/09/01/bank-of-americas-attitude-problem-will-be-its-down.aspx Amanda Alix
September 1, 2013
As Bank of America (NYSE: BAC) struggles to recover from the financial crisis, CEO Brian Moynihan has made it clear that the big bank plans to get back into the mortgage game. To that end, the bank has taken concrete steps, including hiring hundreds of new mortgage bankers to staff its shiny new branch locations.
But, B of A still has a huge problem regarding the mortgage business: Its reputation in that arena is just terrible. People really seem to hate the big bank, and lawsuits like the one accusing Bank of America of rewarding employees who treated loan customers with scorn and condescension has only tarnished its image even further.
The worst part about this situation is that Bank of America seems dead-set against improving its poor performance in the mortgage servicing department. The latest evidence of its disdain for how others view its mortgage business capabilities comes in the form of Fannie Mae's (NASDAQOTCBB: FNMA) Servicer Total Achievement and Rewards ratings, which recognizes mortgage servicers that exhibit performance superior to their peers.
Fannie's servicer rating system
Loan servicers are rated according to three benchmarks: the number of loans 90-plus days delinquent that are successfully returned to non-delinquent status, how well servicers help troubled borrowers avoid foreclosure, and how efficiently servicers make alternatives to foreclosure available. The latter can include short sales, as well as other methods of resolving mortgage debt.
Bank of America flunks another test