News Summary: BofA's mortgage gains, profit miss

News Summary: At BofA, mortgages shoot higher, but bank's profits fall short of predictions

Associated Press

IN THE COURTROOM: The bank plans to settle a class-action lawsuit brought by pension funds upset about mortgage-backed investments they bought from Countrywide Financial, which Bank of America purchased in 2008. But the settlement still needs a court's blessing, and analysts wondered if a similar settlement, with Bank of New York Mellon, would get approval.

HOMES SWEET HOMES: Bank of America funded $25 billion in home loans, 56 percent more than a year ago. The overall mortgage unit, however, continued to lose money, hurt by lower profit margins and legal costs.

BY THE NUMBERS: Profit amounted to $2.3 billion after stripping out payments to preferred shareholders, far greater than the $328 million from a year ago. But those numbers are tricky to compare: Last year's results were hurt by a big accounting charge because the value of the bank's debt rose. Per share, profits missed analysts' estimates.

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