Subscribe Register Login

Monday, July 28, 2014, 5:40 p.m.
Top Picks - Mobile App

Bank of America in $10 billion-plus mortgage settlement

By The Associated Press

This article was published January 7, 2013 at 8:28 a.m.

— Bank of America says it will spend more than $10 billion to settle mortgage claims resulting from the housing meltdown.

Under the deal announced Monday, the bank will pay $3.6 billion to the Federal National Mortgage Association, known as Fannie Mae, and buy back $6.75 billion in loans that the North Carolina-based bank and its Countrywide banking unit sold to the government agency from Jan. 1, 2000, through Dec. 31, 2008. That includes about 30,000 loans.

Chief Executive Officer Brian Moynihan said the agreements were “a significant step” in resolving the bank’s remaining legacy mortgage issues while streamlining the company and reducing future expenses.

Bank of America bought Countrywide Financial Corp. in July 2008, just before the financial crisis. Countrywide was a giant in mortgage lending, but was also known for approving risky loans.

Fannie Mae and the Federal Home Loan Mortgage Corp., known as Freddie Mac, which packaged loans into securities and sold them to investors, were effectively nationalized in 2008 when they nearly collapsed under the weight of their mortgage losses.

Comment on: Bank of America in $10 billion-plus mortgage settlement

To report abuse or misuse of this area please hit the "Suggest Removal" link in the comment to alert our online managers. Read our Terms of Use policy.

Subscribe Register Login

You must login to make comments.

Displaying 1 - 1 of 1 total comment

LevyRat says... January 7, 2013 at 10:07 a.m.

In an attempt to avert a mortgage crisis the federal government all but forces Bank of America to buy failing Countrywide Mortgage in 2008 and now wants money for bad loans made by Countrywide. Typical.

( | suggest removal )

  • page
  • 1
Click here to make a comment

To report abuse or misuse of this area please hit the "Suggest Removal" link in the comment to alert our online managers. Read our Terms of Use policy.

TOP JOBS

  • Eye clinic

    NLR EYE clinic position includes clerical with other respons...
    SEARCY, AR

  • Library assistant

    library assistant ii-Youth ProgrammerFull-time public servic...
    LITTLE ROCK, AR

  • Teachers

    teachers: El Dorado School District has the following positi...
    EL DORADO, AR

  • Sales

    pine bluff, batesville, hot springs areas need one fulltime ...
    Pine Bluff, AR

  • Drivers

    Local Runshome daily!$1500 Sign On Bonus• Work a 5 Day Week ...
    FAYETTEVILLE, AR

Search 893 jobs >

Top Picks - Mobile App
Arkansas Online