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BofA Says It Settled Seattle Bank Mortgage Suit for $190 Million

Bank of America Corp. said it reached a $190 million agreement to resolve a six-year-old legal claim from Federal Home Loan Bank of Seattle over mortgage-backed securities sold before the financial crisis.

The Charlotte, North Carolina-based firm disclosed the April deal in a regulatory filing on Monday, noting it already set aside funds to cover the cost. Seattle Bank, one of a dozen government-sponsored regional lenders that supplied financing to member banks and finance companies, had accused Bank of America of making misstatements and omitting information about the quality of mortgages underpinning the securities.