Bank Of America Disapproves Of RMS Sale
Bank of America has filed an objection to the sale of Reverse Mortgage Solutions, by Ditech Holding Corporation, the parent company of RMS, according to a report from Reverse Mortgage Daily.
"BofA’s objection to the sale of the reverse mortgage servicer stems from a servicing agreement it holds with RMS, and the possibility of a lapse in servicing that could result from a sale of the company," according to RMD.
BofA has two major concerns as RMD points out. The banking giant wants to ensure that the new parent company for RMS will not step in, should BofA decide to pursue outstanding debts that Ditech has. BofA is also concerned with loans that are currently being serviced and having to take on servicing obligations, according to the report.
"If Ditech intends to disrupt any rights that holders of its debt would have to future collection, the company has no legal basis under the law to accomplish this, the complaint reads," according to RMD.
To learn more about BofA's objection to the RMS sale, click on the image above.