Bank of America (NYSE:BAC) has agreed to sell roughly $18 billion in servicing rights for reverse mortgages to Nationstar Mortgage for approximately $25 million.
The deal which is subject to purchase price adjustments and is expected to close on December 22, 2011, according to a Securities Exchange Commission filing. The transfer of the loans is expected to occur in stages beginning in the second quarter of 2012 and continue through the rest of the year.
The decision to sell the servicing rights comes after Bank of America announced it was exiting the business in February, it was the second largest reverse mortgage lender in the country.
Sources close to the transaction tell RMD that Celink, a subservicer based in Lansing, Mich., will handle the servicing for Nationstar. When RMD asked Celink to confirm, the company declined to comment.
Nationstar is a one of the nation’s largest mortgage servicers and is backed by Fortress Investment Group (NYSE:FIG).