BofA (BAC) Offers Homeowners Golden Egg in Effort to Avoid Fees
Tweet
Share
E-mailGet Alerts BAC Hot Sheet
Join SI Premium – FREE
Bank of America (NYSE: BAC) shares are indicated for a higher open Friday amid chatter of a new mortgage relief deal.
According to the WSJ, BofA might be in cahoots with the U.S. over the reduction of some 200,000 mortgage balances to avoid about $850 million in fines.
Qualifying homeowners are expected to save about $100,000 on average, according to one BofA spokesperson. The move is part of a broader $25 billion settlement between the U.S. and its five largest banks, which also include Wells Fargo (NYSE: WFC) and Citigroup (NYSE: C). BofA is on the hook for $3.24 billion in cash payments to federal and state governments as well as $8.58 billion of principal write-downs, refinancings, and other assistance, the WSJ said.
Those holding securities backed by the mortgages might balk at the deal, as a reduction in principal will reduce the value of their holdings.
Shares of BofA are about 0.6 percent higher Friday morning.
According to the WSJ, BofA might be in cahoots with the U.S. over the reduction of some 200,000 mortgage balances to avoid about $850 million in fines.
Qualifying homeowners are expected to save about $100,000 on average, according to one BofA spokesperson. The move is part of a broader $25 billion settlement between the U.S. and its five largest banks, which also include Wells Fargo (NYSE: WFC) and Citigroup (NYSE: C). BofA is on the hook for $3.24 billion in cash payments to federal and state governments as well as $8.58 billion of principal write-downs, refinancings, and other assistance, the WSJ said.
Those holding securities backed by the mortgages might balk at the deal, as a reduction in principal will reduce the value of their holdings.
Shares of BofA are about 0.6 percent higher Friday morning.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Citigroup set to join top banks in Anthropic IPO - Bloomberg
- BofA Securities Upgrades Etsy (ETSY) to Buy, 'Still Room to Run'
- Longeveron names Nirav Jhaveri as CFO
Create E-mail Alert Related Categories
Corporate News, Insiders' BlogRelated Entities
Citi, Wells FargoSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
