On February 7, Bank of America agreed to purchase a $9 billion portfolio of residential mortgage loans from Toronto-Dominion Bank, as disclosed by a source familiar with the transaction. In response to a request for comment, TD has not yet provided a statement.
During a banking conference in January, TD's CEO Raymond Chun indicated the bank's intention to divest certain loan portfolios. Previously, in October of last year, TD announced plans to restructure its balance sheet by fiscal 2025 following its admission of guilt for violating a U.S. anti-money laundering law, leading to the payment of $3 billion in combined penalties.
Having previously focused on expanding in the U.S. retail market, TD is now compelled to concentrate its efforts on meeting regulatory requirements due to an uncommon asset cap. With over 1,100 branches and nearly 10 million customers, its U.S. operations establish it as the 10th largest bank in the country.