Bank of America has agreed to purchase a $9 billion residential mortgage loan portfolio from Toronto-Dominion Bank, as reported by a source on February 7.
Toronto-Dominion Bank did not respond immediately to a request for comment.
In January, CEO Raymond Chun indicated at a banking conference that the Canadian lender would consider divesting certain loan portfolios.
Last October, TD announced plans to restructure its balance sheet by fiscal year 2025 after admitting guilt in violating a U.S. anti-money laundering law and agreeing to a $3 billion penalty.
The lender, previously focusing on expanding in the U.S. retail market, is now compelled to align with a rare asset cap imposed by regulators. With over 1,100 branches and close to 10 million customers, TD is currently the 10th largest bank in the United States.