Bank of America Corp., Deutsche Bank AG and Credit Suisse Group AG are deferring underwriting fees for initial public offerings by mortgage investment companies after buyers balked at the deals.

The Charlotte company's Bank of America Merrill Lynch, the top underwriter of initial U.S. stock offerings this year, agreed to delay part of its fees from two recent sales until the companies, known as real estate investment trusts, generate an 8% return on equity for a full year. The New York securities unit will forfeit the payments if the target is not met within six years, according to regulatory filings. Deutsche Bank and Credit Suisse have accepted similar terms to underwrite mortgage REITs.

Investors are pushing REITs and their bankers to reduce fees so more IPO money becomes available to buy mortgage securities. The concessions began after Invesco Mortgage Capital Inc. cut a June stock sale in half amid weak demand.

At least 13 REITs have filed for underwritten IPOs since May, and B of A Merrill was an underwriter for six, according to filings with the Securities and Exchange Commission.

The B of A unit, Deutsche Bank and Credit Suisse agreed to defer a portion of their underwriting fees for a $335 million IPO last month by PennyMac Mortgage Investment Trust in Calabasas, Calif., SEC filings show. PennyMac is run by former executives of Countrywide Financial Corp., which is now part of B of A.

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