Bank of America Corp. could announce as early as this morning an agreement to pay $8.5 billion to settle claims by a group of investors that took losses on soured mortgage-backed securities, people familiar with the matter said.

The settlement would be the largest any financial institution has paid to resolve disputes with investors who bought home loans packaged into bonds during the housing boom. For Bank of America, it's also the latest damage stemming from its 2008 purchase of Countrywide Financial.

The payment would equate to about one-third of the Charlotte bank's $26.8 billion in revenue in the first quarter and more than quadruple the $1.7 billion profit it made in the period.

Bank of America began talks last fall with the investors, which include money manager BlackRock Inc. and the Federal Reserve Bank of New York. The investors bought the loans from Countrywide, which Bank of America purchased for $4 billion in 2008.

The investors, who are represented by a Texas law firm, hold about 230 securitizations with original collateral exposure of about $177.1 billion, according to a securities filing. The Fed inherited Countrywide loans during the 2008 bank bailouts.

Requests to buy back defective mortgages have been a major cloud hanging over the bank and its chief executive Brian Moynihan, who is 18 months into a difficult turnaround effort. After initially pledging to fight repurchase requests loan by loan, the CEO has taken steps that he has said are necessary to put the issue behind the bank.

In January, Bank of America announced a $2.8 billion settlement with Freddie Mac and Fannie Mae that helped address its exposure to claims by those two government-controlled mortgage giants. In April, the bank reached an agreement with an insurer that is expected to cost about $1.6 billion.

The latest settlement would apply to a third batch of claims, those with private investors. The bank has said these repurchase requests could cost $7 billion to $10 billion in excess of the reserves it already has taken. At the end of the first quarter, it had set aside $6.2 billion to cover mortgage repurchase requests.

The $8.5 billion agreement would address a significant amount of risk the bank faces from private investor requests, people familiar with the matter said. Bank of America's board met to consider the settlement on Tuesday.

The huge payment could also set a benchmark for other large banks, including Wells Fargo and JPMorgan Chase, which also face investor demands.

Bank of America agreed to buy Countrywide in January 2008 as the mortgage lender verged on collapse. The move was initially seen as a potentially lucrative deal, but it quickly soured as loans and legal claims mounted.

The bank's mortgage unit has lost $15.9 billion since the fourth quarter of 2008. Federal banking regulators have ordered the bank to improve foreclosure processes and state attorneys general continue to investigate servicing issues. Of the bank's 1.3 million home loan customers who are at least 60 days delinquent, 85 percent are from Countrywide.

From the beginning of 2008, Bank of America has posted $46 billion in housing-related losses and could rack up $27 billion more by the end of 2013, according to a report this month by Sanford C. Bernstein analyst John McDonald.

Bank of America's shares have suffered as investors worry about mortgage-related losses, falling about 19 percent this year. In after-hours trading Tuesday, the bank's shares were up 1 percent to $10.93.