Bank of America Shares Rise on $2 Billion Home Loan Settlement (BAC)

Banking giant Bank of America Corporation ( BAC ) on Monday announced it will take a nearly $2 billion charge in the fourth quarter related to a home loan buyback settlement. The residential mortgage loans in question were sold to Fannie Mae and Freddie Mac, and were tied to Countrywide Financial Corp. BAC bought Countrywide back in 2008 amid the financial meltdown. The company also said it expects to take a $3 billion loan loss provision in the fourth quarter to protect against future home loan repurchases. CEO Brian Moynihan said “These actions resolve substantial legacy issues in the best interest of our shareholders. Our goals remain the same: put these issues behind us; focus on serving customers and clients; and continue to help distressed homeowners facing difficult times.” Bank of America shares rose 52 cents, or +3.9%, in premarket trading Monday. The Bottom Line Shares of Bank of America ( BAC ) have a .30% dividend yield, based on Friday’s closing stock price of $13.34. The stock has technical support in the $11-$12 price area. If the shares can firm up, we see overhead resistance around the $15-$16 price levels. Bank of America Corporation ( BAC ) is not recommended at this time, holding a DARS™ Rating of 3.1 out of 5 stars. Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a

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Bank of America Shares Rise on $2 Billion Home Loan Settlement (BAC)

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