June 29, 2011 / 12:16 AM / 8 years ago

BofA settles on mortgage repurchase claims

A Bank of America sign is displayed outside a branch in Tucson, Arizona in this January 21, 2011 file photo. Bank of America Corp is close to a deal to pay $8.5 billion to settle claims from a group of powerful investors that lost money on mortgage-backed securities, a person familiar with the matter said on June 28, 2011. REUTERS/Joshua Lott/Files

(Reuters) - Bank of America Corp settled nearly all of the claims related to the legacy Countrywide-issued first-lien residential mortgage-backed securitization (RMBS) repurchase exposure for $8.5 billion in cash .

The largest U.S. bank by assets said it intends to record an additional $5.5 billion provision to its representations and warranties liability for both Government-Sponsored Enterprises (GSE) and non-GSE exposures in the second quarter of 2011.

On Tuesday Reuters reported that Bank of America was close to a settlement agreement with a group of powerful group of investors that lost money on mortgage-backed securities.

Reporting by Brenton Cordeiro; Editing by Savio D'Souza

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