The Bank of America is settling another one of its mortgage related accusations in the amount of $165 million. The National Credit Union Administration accused the bank over shady sales of mortgage-backed securities to corporate credit unions.
Bank of America stated that the settlement would be paid for by existing reserves. Since the financial crisis, the bank incurred over $40 billion in losses from the home loan business. The credit union settlement was only one of the many legal issues the bank faced concerning mortgages. In January alone, the bank ended a good amount of its mortgage-related problems spending $14 million in settlements.
During the financial crisis, Bank of America purchased Countrywide Financial, a mortgage lender that sparked the chain reaction of losses for the bank in 2008. When things went sour, the NCUA threatened to sue the Countrywide, Merrill Lynch and the bank. The current settlement to credit unions and the NCUA is aimed at solving those claims of shady mortgage security offerings.
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