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Bank of America's long effort to become a slimmer, more profitable retail bank could be starting to pay off. In a tough quarter for revenue growth, its consumer banking division gained traction thanks to branch consolidation, investments in mobile banking and other factors.
October 14 -
Multiple state and federal officials put the banks on notice that the $25 billion mortgage servicing settlement is just the first step in pursuing civil litigation and criminal prosecutions in connection with misdeeds before, during and after the financial crisis.
February 9 -
The appeals court ruling against MERS that caused the GSEs and the Department of Housing and Urban Development to reinitiate foreclosures on more than 1,600 Michigan properties was overturned by the state's highest court this week.
November 18
Bank of America has agreed to pay $335 million to settle a lawsuit claiming it misled shareholders about risky mortgages and its dependence on the electronic mortgage registry known as MERS.
B of A has enough reserved to cover the settlement cost, the company said in its 10-Q, filed on Friday. B of A only briefly referred to the settlement and said that it's subject to final documentation and federal court approval.
Institutional investors, including the Pennsylvania Public School Employees' Retirement System,
The investors also alleged B of A knew it couldn't raise adequate capital to repurchase billions of dollars in securities that used Countrywide Financial-originated loans as collateral.
The plaintiffs also claimed that B of A knew that Merscorp's Mortgage Electronic Registration System, known as MERS, was faulty and that the bank would not be able rely on MERS to legally foreclose on thousands of delinquent borrowers.
(MERS was created in 1995 as a private loan registry allowing mortgage lenders to avoid paying county recorder fees. It later became a lightning rod for foreclosure litigation.)
The MERS lawsuit had been one of the longest-running cases filed against B of A that had not been settled. Brian Moynihan, chairman and chief executive, has