UPDATE: Bank of America Initiates Home Loan Servicing Solutions at Buy on Yield

Bank of America initiated coverage on Home Loan Servicing Solutions HLSS with a Buy rating and a $18 price objective. Bank of America commented, "We are initiating coverage on Home Loan Servicing Solutions (HLSS) with a Buy rating and establishing an $18.00 price objective, implying a 12% total potential return over a 12-month holding period. HLSS is a newly formed company that is active in the burgeoning non-bank servicing sector and serves as a financial partner to Ocwen Financial. In our view HLSS is well positioned to capitalize on the growing demand for credit-impaired servicing and migration toward “capital- light” servicing models." Home Loan Servicing Solutions closed at $17.44 on Monday.