BofA in mortgage Setttlement talks (Wall Street Journal)

Bank of America Corp., after combat requests that he buy certain loans began to potential settlement discussions with some of its largest investors of the mortgage.

The Group of 17 members currently in talks with largest bank nation such as measured by assets includes the Federal Reserve Bank of New York, a company owned by the Government mortgage Freddie Mac, BlackRock Inc. and Allianz are Pacific Investment Management Co. or Pimco.

Reuters CEO Brian Moynihan told BofA was engaging in "at par" combat on mortgage redemption requests.

Approach to the Bank with this group appears to signal a change in tone for Chief Executive Brian Moynihan, which, in November, is committed to participate in the "daily struggle, body to body" on requests for the investor to buy up bad mortgages made before U.S. housing collapse.

Spokesperson for the Bank James Mahoney said the decision to enter into talks with the Group of investors is not incompatible with the previous approach by Mr. Moynihan.

"Our strategy has not changed", he said. "Bank of America and investors, solve these problems quickly in the interests of all." If resolution is a long-term process, or it can be speeded up, say. »

Investors, some of which are acting on behalf of clients, sent a letter October alleging that a unit of Bank of America has not properly 115 trading link service consisting of residential mortgages. It gives the Bank 60 days to respond.

Disclosure of stock of the Bank of America tumbling 4.4% letter on 19 October, as investors grappled with door that the Bank could be overwhelmed with these demands of the investor. The Group has since expanded and now includes 17 investors and 167 treats binding.

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"Our clients are of course very pleased that we were able to open this dialogue and we hope to move it in a positive direction," said Kathy Patrick, a lawyer for the holders of bonds. Mrs. Patrick said that initial extension in the period of negotiations will be January 30, but it can of course be extended if discussions are productive. »

The talks could disintegrate, but conversations are an attempt by the Bank to put the question behind him, people familiar with the situation said.

No American Bank is more vulnerable to an array of the policies and financial threat posed by the misfortunes of loans. Bank of America has repurchased requests more than any of his rivals. It services a mortgage every U.S. five, many of them for the acquisition of Bank of America lender program national Financial Corp. in 2008.

"The objective set out Brian is to put the issues behind us as quickly as possible and in the best interests of the shareholders"Bank spokesman, said Mr. Mahoney."Virgin"

Purchase loan mortgage new claims amounted to 12.8 billion at the end of the third quarter, up to 7.5 billion for the quarter of the year - ago in total. The Bank has set aside $ 4.4 billion in reserves for these restore attempts.

M. Moynihan said analysts on 19 October that he was not interested by a lump sum payment large obliterating the question of redemption.

"We want to put this behind us to make us feel that good", he said. "We will make sure we are going to pay when due, but not just to make a regulation to move the issue behind us."

-Ruth Simon
has contributed to this article.

Write toDan Fitzpatrick dan.fitzpatrick@wsj.com