On January 21, Reuters reported that Toronto-Dominion Bank plans to sell approximately $9 billion of residential mortgage loans to adjust its balance sheet in line with a new cap mandated by U.S. regulators, as per Bloomberg News. This action is part of a plea agreement the Canadian bank made last year with government authorities, as indicated by sources familiar with the matter.

Toronto-Dominion Bank, the second largest bank in Canada and the 10th largest in the U.S., has not yet responded to a request for comment from Reuters.

In October 2024, TD Bank made history as the largest U.S. bank to focus on preventing money laundering, agreeing to pay over $3 billion in penalties to settle charges. The plea agreement entailed an unusual asset cap and other business restrictions.

The portfolio being sold, with bids due next week, consists of "jumbo mortgages" held by U.S. homeowners with notably high credit scores, the report noted.