Bank of America Foreclosures (FILE - In this April 16, 2010 file photo, a Bank of America branch is shown in Charlotte, N.C. Ban
Chuck Burton/AP
U.S. housing regulators are looking to fine Bank of America more than $6 billion for its role in misleading mortgage agencies during the housing boom, compared with the $4 billion to be paid by JPMorgan Chase, the Financial Times reported on its website, citing people familiar with the matter.

FT said the Federal Housing Finance Agency, pursuing claims on behalf of finance agencies Fannie Mae and Freddie Mac that back about half the existing U.S. home loans, are seeking the penalty.

FHFA and Bank of America (BAC) couldn't be reached for comment outside of regular business hours.

Countrywide Financial, the mortgage lender acquired by Bank of America in July 2008, has cost the bank more than $40 billion in litigation expenses and other charges linked to its bad subprime mortgages. The bank set aside an additional $300 million for mortgage litigation in the latest quarter.

JPMorgan (JPM) reached a tentative $4 billion deal with the FHFA on Friday to settle claims that the bank misled government-sponsored mortgage agencies about the quality of mortgages it sold them, according to a person familiar with the matter.

JPMorgan also reached a tentative $13 billion deal with the U.S. Justice Department and other government agencies to settle investigations into bad mortgage loans the bank sold to investors before the financial crisis, a source familiar with the talks told Reuters on Saturday.



Increase your money and finance knowledge from home

Understanding Stock Market Indexes

What does it mean when people say "the market is up 2%"?

View Course »

Behavioral Finance

Why do investors make the decisions that they do?

View Course »

Add a Comment

*0 / 3000 Character Maximum

24 Comments

Filter by:
ezparcel

Remember back when we were going to fall off the cliff and the world was comming to an end, and the Government made all the banks take money. On some of the banks they paid dividends, so when the goverment bought their stock they got paid a qt dividend. If I remember Bank of America was paying the Govenment $300 mil. each qt. on the stock that they held untill they sold the stock. So I guess all the fines that are being collected are going to were ever that money went .

October 21 2013 at 3:43 PM Report abuse rate up rate down Reply
Nekima

Its no surprise they could not be reached.....BANKS ARE CROOKS & SCUMBAGS>:

October 21 2013 at 3:29 PM Report abuse rate up rate down Reply
cozzod

no problem, this is chump change for them

October 21 2013 at 3:21 PM Report abuse rate up rate down Reply
fjemail

The WSJ will have a headline in the year 2097 that says that BAC costs for purchasing Countrywide have just crossed the $6 Trillion mark. Also in the same article, Mr Peter Williams whose great great grandfather once stepped inside a BAC branch office and spoke to a teller, was just awarded $40 million because his grandfather was not made aware that the branch office was offering free candy that day.

October 21 2013 at 3:09 PM Report abuse -1 rate up rate down Reply
The Cat's Meow!

mac2jr You are right on the money on your evailation of the problem. The key word is Greed! This came from all walks of life in the business comunity. They all wanted a pice of the pie at the expense of poor and uneducated.

October 21 2013 at 3:03 PM Report abuse +1 rate up rate down Reply
The Cat's Meow!

Roberta make this comment "Roberta Only 6 billion? How much did they make?"
I would say about 35 billion in profits.

October 21 2013 at 2:54 PM Report abuse rate up rate down Reply
Roberta

Only 6 billion? How much did they make?

October 21 2013 at 2:46 PM Report abuse rate up rate down Reply
kentblackdog

The fix is in----------you pay a 6 billion dollar fine, for pocketing 100's and 100's of billions

Sounds, like real sweet deal -------and nobody went to jail

October 21 2013 at 2:35 PM Report abuse rate up rate down Reply
ritaesq

Where does all this fine money go? Do the people that were duped see any part of it? Just asking.

October 21 2013 at 1:50 PM Report abuse +2 rate up rate down Reply
ezparcel

If these mortgages were a part of Countrywide Financial, why is bank of america the bad guy. I thought that the goverment shut down Countrywide and other lenders that were part of this mess and ask other banks to take on their business.

October 21 2013 at 1:45 PM Report abuse rate up rate down Reply
1 reply to ezparcel's comment
Roberta

All banks were in on the mortgage robberies.

October 21 2013 at 2:47 PM Report abuse +2 rate up rate down Reply