Bank of America faces massive $13 billion RMBS claim
Bloomberg cites coming DoJ settlement
The loans involve issues related to problematic mortgage originator Countrywide, which BofA now owns.
The settlement would come on top of the $9.5 billion the bank agreed last month to pay to resolve Federal Housing Finance Agency claims, said two people who asked not to be named because the negotiations are private.
A deal could come within the next two months, the people said.
If the Justice Department gets its way, the case against Bank of America will eclipse JPMorgan Chase & Co.’s (JPM) record $13 billion global settlement over similar issues in November. That settlement, which included a $4 billion agreement with the FHFA, encompassed loans JPMorgan took over with its purchases of Washington Mutual Inc. and Bear Stearns Cos.
According to the Bloomberg article, BofA spent more than $50 billion so far to resolve claims related to mortgage operations before 2009.