Bank of America to acquire $9 billion mortgage portfolio from TD Bank - Bloomberg
Investing.com -- Bank of America Corp (NYSE: BAC ). has reached an agreement to acquire a $9 billion residential mortgage loan portfolio from Toronto-Dominion Bank (TSX: TD Bank), according to Bloomberg News. This move comes as the Canadian bank seeks to offload certain assets in order to comply with a new regulatory cap on its holdings, according to sources familiar with the matter.
The portfolio, consisting of jumbo mortgages from US homeowners with relatively high credit scores, was open for bids last week. TD Bank has been making adjustments to its balance sheet recently to adhere to a roughly $434 billion cap on its US retail banking assets. This cap was enforced last year by regulatory authorities following TD Bank's guilty plea for its failure to prevent money laundering activities by drug cartels and other criminal entities.
The potential sale of the jumbo mortgage portfolio to Bank of America is still in the negotiation phase, with discussions continuing.
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