News Briefs

  Tevet 25, 5773 , 07/01/13

BoA Settles Claim with Fannie Mae, to Pay $11.6 Billion

Bank of America said Monday it would pay $11.6 billion to settle claims on soured loans sold to government-backed mortgage finance giant Fannie Mae during the home price bubble.

Under the agreements, Bank of America Corp. said it would pay $3.55 billion in cash to Fannie Mae and repurchase for $6.75 billion some residential mortgage loans it had sold to the government-controlled firm.

In addition, Bank of America will pay $1.3 billion to address mortgage servicing issues, Fannie Mae said in a separate statement.

Fannie Mae said the deal would compensate it for actual and projected losses resulting from the loans.

Other archived news briefs:Jan 07 2013, 06:02 PM, 1/7/2013