(Reuters) – Toronto-Dominion Bank is aiming to sell about $9 billion of residential mortgage loans with the intention to modify its balance sheet to comply with a recent cap imposed by the U.S. regulators, Bloomberg News reported on Tuesday.

This is a component of the plea agreement the Canadian lender reached last 12 months with the federal government authorities, the report added, citing people acquainted with the matter.

TD Bank, Canada’s second biggest bank and the tenth largest within the U.S., didn’t immediately reply to a Reuters request for comment.

In October 2024, TD Bank became the most important bank in U.S. history to plead guilty to violating a federal law geared toward stopping money laundering. It agreed to pay over $3 billion in penalties to resolve the fees.

The plea deal included a rare imposition of an asset cap and other business limitations.

The sale portfolio, for which bids are due next week, includes so-called jumbo mortgages obtained by U.S. homeowners with comparatively high credit scores, the report added.

(Reporting by Pritam Biswas in Bengaluru; Editing by Alan Barona)