The banking industry may have to spend more than $60 billion to buy back troubled mortgages, according to a report released on Tuesday by Standard & Poor’s.
The exposure stems from risky loans that the banks packaged and sold as securities at the height of the mortgage bubble. The terms of the mortgage security deals often required lenders to repurchase loans that failed to meet certain underwriting criteria.
S.&.P., the credit rating agency, said the nation’s six largest banks face the brunt of the liability. Bank of America and JPMorgan Chase “have the highest exposure,” the report said.
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