BofA Said Nearing Up to $17 Billion Mortgage Settlement

Bank of America Corp. is nearing a $16 billion to $17 billion record settlement with the U.S. Justice Department to end probes into sales of mortgage-backed bonds that fueled the financial crisis, according to a person familiar with the matter.

Under the proposed terms, the bank would pay about $9 billion in cash and the rest in consumer relief to settle federal and state claims, according to the person, who asked not to be named because the negotiations are private. Details of the proposed accord, such as the relief and a statement of facts, are still being negotiated, the person said.