Bank Of America Seeks Immunity In Mortgage Deal With Prosecutors

Bank of America is reportedly willing to pay its way out of future mortgage and foreclosure claims.

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  • Mortgages
    Also called a variable-rate mortgage, an adjustable-rate mortgage has an interest rate that may change periodically during the life of the loan in accordance with changes in an index such as the U.S. Prime Rate or the London Interbank Offered Rate (LIBOR). Bank of America ARMs use LIBOR as the basis for ARM interest rate adjustments.
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    The agreement, if reached, could be used as a template for the other four banks. The state and federal prosecutors are operating on the assumption that if they could strike a deal with Bank of America -- the nation's largest mortgage servicer -- that would compel the other large banks to go along or risk prosecution.
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