Finance
Bank of America to Buy $9 Billion Jumbo Mortgage Portfolio From TD
- Bids for the residential mortgage loans were due last week
- Lighter regulations could boost banks’ appetite for mortgages
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Bank of America Corp. has agreed to buy a $9 billion portfolio of residential mortgage loans from Toronto-Dominion Bank, as the Canadian lender looks to shed certain holdings to meet a new regulatory cap on its assets, according to people with knowledge of the matter.
Bids were due last week for the portfolio of so-called jumbo mortgages from US homeowners with relatively high credit scores, as previously reported by Bloomberg. TD has been adjusting its balance sheet lately to comply with a roughly $434 billion cap on its US retail banking assets, imposed last year by regulators as part of a guilty plea for failing to prevent money laundering by drug cartels and other criminals.