Bank of America has agreed to pay $335 million to settle a lawsuit claiming it misled shareholders about risky mortgages and its dependence on the electronic mortgage registry known as MERS.

B of A has enough reserved to cover the settlement cost, the company said in its 10-Q, filed on Friday. B of A only briefly referred to the settlement and said that it's subject to final documentation and federal court approval.

Subscribe Now

Access to a full range of industry content, analysis and expert commentary.

30-Day Free Trial

No credit card required. Access coverage of the securitization marketplace, including breaking news updated throughout the day.