Bank of America in talks on $12 billion mortgage settlement

Bank of America is negotiating a deal with the Justice Department and a number of states that could lead to a roughly $12 billion settlement related to the bank's mortgage banking practices, according to a U.S. law enforcement official.

CNNMoney reports on allegations that Bank of America defrauded mortgage-backed securities buyers by misleading them about the quality of the loans.

Bank of America declined to comment on the potential settlement. The U.S. official said a deal is still weeks away.

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