Oct 20 (Reuters) - U.S. housing regulators are looking tofine Bank of America more than $6 billion for its rolein misleading mortgage agencies during the housing boom,compared with the $4 billion to be paid by JPMorgan Chase & Co, the Financial Times reported on its website, citingpeople familiar with the matter.
The FT said the Federal Housing Finance Agency (FHFA),pursuing claims on behalf of finance agencies Fannie Mae andFreddie Mac that back about half the existing U.S. home loans,are seeking the penalty. ()
FHFA and Bank of America (BofA) could not be reached forcomment outside of regular business hours.
Countrywide Financial Corp, the mortgage lender acquired byBofA in July 2008, has cost the bank more than $40 billion inlitigation expenses and other charges linked to its bad subprimemortgages. The bank set aside an additional $300 million formortgage litigation in the latest quarter.
JPMorgan reached a tentative $4 billion deal with the FHFAon Friday to settle claims that the bank misledgovernment-sponsored mortgage agencies about the quality ofmortgages it sold them, according to a person familiar with thematter.
JPMorgan also reached a tentative $13 billion deal with theU.S. Justice Department and other government agencies to settleinvestigations into bad mortgage loans the bank sold toinvestors before the financial crisis, a source familiar withthe talks told Reuters on Saturday.
- Financials Industry
- Bank of America
- Federal Housing Finance Agency
- mortgage loans
- Countrywide Financial Corp