BofA Extends Settlement Talks on Mortgages
Bank of America, the U.S.'s largest bank by assets, has initiated potential settlement discussions with several mortgage investors, a newspaper reported Wednesday.
According to the Wall Street Journal, BofA will discuss a possible settlement with the New York Fed, Freddie Mac, Blackrock and Allianz'sPimco.
The group claims BofA should repurchase a portion of some $47 billion in mortgages because Countrywide Financial, a unit of BofA issued them improperly, including cases of incomplete paperwork and signatures by "robo-signers."
The discussions represent a change in direction for the bank's management, which up until recently had opposed pressure to repurchase troubled mortgages. Bank of America had argued last month that buying back loans would worsen the foreclosure crisis by forcing it to evict additional homeowners.
Shares of BofA, which were lower during the regular New York Stock Exchange session, moved higher in extended trading Wednesday. Click here for late BofA quotes.