Utah-based SecurityNational Mortgage Co. has agreed to a monetary settlement of a claim by Bank of America that it sold the Charlotte, N.C.-based lender defective mortgage loans. The amount of the settlement was not disclosed.
Bank of America is the latest bank to reach a deal with SecurityNational. Th company already agreed to similar settlements with other lenders, including San Francisco-based Wells Fargo. All of the settlements relate to banks' claims that SecurityNational sold mortgage loans that went into early default or were defective in other ways.
Bank of America and Countrywide Financial, bought by the bank in 2008, had wanted SecurityNational to repurchase the loans and compensate them from losses stemming from them, according to SecurityNational officials. Bank of America stopped buying loans from SecurityNational in 2010.
SecurityNational officials previously stated that in return for the settlement payment, the bank has provided SecurityNational a release from other any claims resulting from the loans. SecurityNational officials and Bank of America officials were not immediately available for comment on news of the settlement.