Bank of America, near the settlement of 8.5 billion on mortgages - CNBC.com

Complaints investor against Bank of America on the mortgages, which have bedeviled the Bank since last fall, appear to be close to resolution that the Bank is to pay $ 8.5 billion to a group of investors private, according to people familiar with the case.Branch of the bank of America, New York City.Such a regulation would be developed fresh rest that the Bank breached its agreements interview with buyers of home-loan on mortgage valued at tens of billions of dollars during the real estate boom. It would also put an end to one of the more clumsy chapters of battle of Bank of America mortgage holders dissatisfied and purchasers of mortgage-backed securities. The regulations could be announced publicly early as tomorrow, these people say. The case began in the fall of last with a warning of a group of mortgage investors, including the New York Federal Reserve Bank, Pacific Investment Management and BlackRock, accused Bank of America in violation of its obligations at least 47 billion of mortgages. The question is since passed to encompass a greater number of mortgage loans, said one of those familiar with the case. If the settlement is finalized and approved quickly, it will probably lead to Bank of America, taking a devaluation in the second quarter, said one person familiar with the case. Bank of America has been affected by the concern of its many legal issues - a subject that uses several pages dans the most recent annual report of the Bank throughout the year. Recently, in January, Director of Bank of America found the loss of not more than $ 7 billion to 10 billion dollars of so-called put-back or distributor mortgages such as those at issue in the colony pending. But an estimate more recent analyst of Crédit Agricole securities financials Mike Mayo stowed potential losses of put-back to $ 7 billion, which suggests that the market can summer awaits a lower number. Bank of America shares [tray Loading...]      [() ] are down 19% this year and 7% only in the month, having closed at $10,82 Tuesday. Shares jumped on the trade after hours. Click here for the last quote.