Bank of America (NYSE:BAC) confirmed it has joined the other four largest mortgage services in agreeing in principle to the terms of a global settlement resolving federal and state investigations into certain origination, servicing and foreclosure practices. The settlement would extend additional relief to homeowners who are struggling to make mortgage payments and to make refinancing options available to more homeowners.
Bank of America's commitment under the agreements in principle is $11.8 billion. The financial impact of the settlements is not expected to cause any additional reserves to be taken over those made during 2011, based on the company's understanding of the terms of the agreements in principle.
Bank of America (NYSE:BAC) has potential upside of 7.6% based on a current price of $8.2 and an average consensus analyst price target of $8.83.
Bank of America is currently above its 50-day moving average (MA) of $6.25 and above its 200-day of $8.09.
In the last five trading sessions, the 50-day MA has climbed 2.71% while the 200-day MA has slid 0.8%.
Bank of America Corporation accepts deposits and offers banking, investing, asset management, and other financial and risk-management products and services. The Company has a mortgage lending subsidiary, and an investment banking and securities brokerage subsidiary.
