Investors have reached an agreement with Bank of America Corp. to settle a federal lawsuit over risky mortgage-backed securities.
The litigation was initiated in Manhattan, New York, during
2011. The lead plaintiff is the Pennsylvania Public School Employees’ Retirement System.
BofA disclosed in a filing with the Securities and Exchange Commission that it has reached an agreement with parties in the lawsuit to settle the claims.
The settlement will cost the financial institution $335 million, according to the SEC
10Q filing.
BofA noted, however, that the
agreement is subject to final documentation and court approval.
The Charlotte, North Carolina-based financial institution
was the
fourth-largest mortgage originator during the second-quarter 2015 with $19 billion in loan production.
BofA ranked as the third-biggest mortgage servicer as of June 30 with $610 billion in residential loans serviced.
It has been hit with billions of dollars in legal expenses as a result of its 2008 acquisition of Countrywide Financial Corp.
