TD Bank to Sell $9 Billion in Mortgage Loans Amid Regulatory Asset Cap

TD Bank is preparing to sell approximately $9 billion worth of residential mortgage loans as part of efforts to restructure its balance sheet to meet new regulatory caps imposed by U.S. authorities, Bloomberg News has reported.

The move follows the Canadian lender’s plea agreement reached last year with government regulators. TD Bank, the second-largest bank in Canada and the 10th largest in the U.S., became the largest U.S. bank to plead guilty to violating federal anti-money laundering laws in October 2024. The guilty plea resulted in the bank agreeing to pay over $3 billion in penalties.

As part of the settlement, the bank also faced the imposition of an asset cap and other operational restrictions.

The mortgage portfolio up for sale reportedly includes jumbo loans held by U.S. homeowners with higher-than-average credit scores. According to the report, bids for the portfolio are due next week. TD Bank has not yet commented on the matter.

By fLEXI tEAM