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SEC Asked Bank Of America For Details On Loan-Loss Reserves

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The Securities and Exchange Commission (SEC) sought information from Bank of America Corp (BAC.N) last year about the loan-loss reserves used to repurchase faulty home loans, company filings showed.

In an exchange of letters, the SEC had also asked the bank to explain its methodology of establishing repurchase reserves.

"Discuss the level and type of repurchase requests you are receiving, and any trends that have been identified, including your success rates in avoiding settling the claim," the regulator said in a letter dated January 29, 2010.

The bank's correspondence with the SEC was made public on Monday.

Bank of America had temporarily halted foreclosures nationwide last fall after it found problems with the documents used to repossess homes.

The bank had also said a wide-ranging probe into banks' foreclosure problems could lead to "significant" legal costs in 2011.

"It is not unusual for the SEC to have questions about our regulatory filings and as the letters indicate, we responded to those questions and the issues appear to be resolved," Bank of America spokesman Jerry Dubrowski told Bloomberg in a phone interview.

Reuters could not immediately reach Bank of America for comment outside regular business hours.

(Reporting by Sakthi Prasad in Bangalore; Editing by Vinu Pilakkott)

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