Bank of America Corp., in talks to resolve probes into its handling of mortgages ahead of the financial crisis, would provide at least $5 billion in relief to consumers as part of a proposed settlement, a person familiar with the talks said.
U.S. prosecutors have been seeking more than $13 billion from the firm to resolve federal and state investigations into its sales of mortgage-backed securities, people with knowledge of the situation told Bloomberg News in April.
The Wall Street Journal reported the consumer relief earlier today. The portion used for relief would help homeowners reduce principal debts, cut monthly payments and pay for blight removal in struggling neighborhoods, the newspaper wrote.
Peter Carr, a Justice Department spokesman, declined to comment.
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