Banking

Bank of America settles with company accused of selling defective mortgages

Bank of America has agreed to a settlement from a company that the Charlotte-based lender accused of selling it defective mortgage loans.

Utah-based SecurityNational Mortgage Co. did not disclose the amount the bank has been paid under the settlement announced in a press release Monday. SecurityNational could not be reached for comment. A Bank of America spokesman declined to comment.

Bank of America becomes the latest bank to reach a deal with Security National, which has struck similar settlements with other lenders, such as San Francisco-based Wells Fargo. The settlements resulted from banks’ claims that SecurityNational sold them mortgage loans that went into early default or were defective in other ways.

Bank of America and Countrywide Financial, which the bank bought in 2008, had sought for SecurityNational to repurchase the loans and compensate them from losses stemming from the loans, SecurityNational said. Bank of America stopped buying loans from SecurityNational in 2010.

SecurityNational said it has made the settlement payment to Bank of America. In return, the bank has given SecurityNational a general release from other any claims resulting from the loans, SecurityNational said.

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