Bank of America has agreed to sell part of its home-loan portfolio to mortgage finance giant Fannie Mae as part of its move to shed assets and pare its exposure to an array of mortgage woes, the Wall Street Journal reported.
Bank of America shares were little changed in pre-market trading.
The deal, which was finalized last Friday, will deliver the rights to process and collect payments on a pool of 400,000 loans with an unpaid principal balance of $73 billion, the newspaper said, citing sources familiar with the deal.
The purchase price is more than $500 million, one of the people told the Journal.
The rights of the 400,000 loans will be transferred to Fannie Mae over four months, starting in September with the first slug of 100,000, the daily reported.
Bank of America and Fannie Mae could not be reached for comment.
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