Bank of America to Buy $9 Billion Jumbo Mortgage Book From TD

Bank of America Corp. has agreed to buy a $9 billion portfolio of residential mortgage loans from Toronto-Dominion Bank, as the Canadian lender looks to shed certain holdings to meet a new regulatory cap on its assets, according to people with knowledge of the matter.

Bids were due last week for the portfolio of so-called jumbo mortgages from US homeowners with relatively high credit scores, as previously reported by Bloomberg. TD has been adjusting its balance sheet lately to comply with a roughly $434 billion cap on its US retail banking assets, imposed last year by regulators as part ...