An announcement made by the Bank of America on Thursday has stated that it will be dividing its mortgage business into two parts. The latest decision has been taken to manage foreclosures and discontinued loans in a better manner.

A new Legacy Asset Servicing division has been instated by the financial institution. The new unit will basically be carrying out its duties regarding faulty paperwork. It needs to be remembered that it was because of an issue revolving around paperwork that had led to the suspension of foreclosures of the bank across America in the month of October.

It was only in the month of December that the band had resumed operations after carrying out an independent review.

Apart from paperwork, the new division will also be taking care of changes to mortgage agreements and buyback claims that have been sold to investors regarding bad home loans.

Terry Laughlin has been announced as the head of the new division. He has joined the institution last year in the month of July and was carrying out his duties in the mortgage unit. This is the latest change that has been brought around after the management had made changes in the month of January when the Brian Moynihan was appointed as the CEO.