Bank of America Corp (NYSE: BAC) said that it has been working with a limited number of requests to repurchase soured mortgages out of securities which lacked government-backed guarantees.
The Charlotte-based bank said that unresolved mortgage repurchase requests form investors and insurers totaled about $11 billion on June 30th in a filing on Friday with the Securities and Exchange Commission. That total included $33 million in private-label mortgage-backed securities transactions and $5.6 billion from government sponsored enterprises including Freddie Mac and Fannie Mae. The total also included $4 billion from bond insurers and $1.4 billion from other investors.
The firm said that, “The corporation and its legacy companies have very limited experience with private label MBS repurchases as the number of repurchase requests received has been very limited.”
On December 31st, Bank of America Corp (NYSE: BAC) has total unresolved repurchase requests of $7.6 billion including $3.3 billion from Fannie Mae and Freddie Mac, $1.4 billion from other investors and $30 million from private-label mortgage bond transactions. The firm said in its SEC filing that potential loss reserves for sold or insured mortgages totaled $3.9 billion on June 30th, up from $3.5 billion on December 31st.
Shares of Bank of America Corp (NYSE: BAC) traded down 0.43% hitting $13.96 during mid-day trading on Friday.
