TD Bank Plans to Sell $9B in Mortgages to Comply with Regulatory Cap
Toronto-Dominion Bank (TD) aims to divest $9 billion in residential mortgage loans as it seeks to align its balance sheet with new regulatory limits imposed by U.S. authorities.
This move is part of a plea agreement reached in 2023 between TD, Canada's second-largest bank, and U.S. government agencies, according to Bloomberg News, citing anonymous sources.
As the tenth-largest bank in the U.S., TD agreed to pay over $3 billion in penalties after pleading guilty to violating anti-money laundering laws. The agreement included unique sanctions, including an asset cap and operational restrictions.
Reportedly, the sale portfolio due for bidding next week comprises "jumbo" mortgages granted to U.S. homeowners with high credit scores.
TD Bank did not respond to Reuters' request for comment.