The “Bank of America” has put $1.2 billion in loans up for sale, most of them mortgages, as part of a series of loan sales by U.S. banks to reduce their loan portfolios and meet growing demand from investment firms for high-risk mortgages.

Media sources reported that Bank of America is selling five portfolios of non-performing loans, restructured loans with resumed payments, and some loans where the borrowers have not filed for bankruptcy. Four of the five portfolios are being sold through Bank of America, and the fifth through O'Quinn Financial Corp.

It is worth noting that U.S. banks have recently been forced to sell $18 billion in non-performing mortgage loans this year, according to “Maison Capital Advisors,” a debt sales brokerage firm. The list of buyers includes hedge funds and private equity firms.