Bank of America is moving about 50% of its13.9 million mortgages into a “bad” bank, Bloomberg reports. The bad bank will consist of the riskiest and worst-performing “legacy” loans, said Terry Laughlin, who is managing the new unit.

The legacy portfolio will comprise of 6.7 million loans with outstanding principal balance of about $1 trillion. After the segregation, home loan president, Barbara Desoer, will be left with about half her previous portfolio, as well as new lending going forward.

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