BofA could pay up to $8bn in mortgage lawsuit

Bank Of America Building

Bank of America, may need to pay $5bn to $8bn to settle a federal mortgage lawsuit after a rival bank’s deal set 'a relatively high bar', according to Fitch Ratings.

Bloomberg reports that Bank of America had about $57bn in mortgage-backed securities cited by a Federal Housing Finance Agency lawsuit, compared with about $33bn tied to JPMorgan’s suit, which was settled last week for $4bn, Fitch analysts wrote in a note today.

Lenders facing FHFA claims may have to boost litigation reserves based upon the JPMorgan deal, Fitch said. Charlotte, North Carolina-based Bank of America’s settlement costs probably wouldn’t affect the lender’s credit grades, Fitch said.

To access the complete Bloomberg article hit the link below:

BofA Accord With FHFA Could Cost $8 Billion, Fitch Says

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