BofA Accord With FHFA Could Cost $8 Billion, Fitch Says
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Bank of America Corp., the second-biggest U.S. lender, may have to pay $5 billion to $8 billion to settle federal claims tied to faulty mortgages after a rival lender’s deal set “a relatively high bar,” Fitch Ratings said.
Bank of America had about $57 billion of mortgage-backed securities cited by a Federal Housing Finance Agency lawsuit, compared with about $33 billion in a case involving JPMorgan Chase & Co. that was settled last week for $4 billion, Fitch analysts wrote in a note today.