BofA enters multibillion dollar settlements with Fannie Mae
Bank of America (BofA) and Fannie Mae may be burying their hatchet. The two parties agreed to a series of settlements totaling nearly $12 billion.
January 07, 2013 at 05:59 AM
2 minute read
The original version of this story was published on Law.com
Bank of America (BofA) and Fannie Mae may be burying their hatchet. The two parties agreed to a series of settlements totaling nearly $12 billion. The agreement is expected to help BofA move past its 2008 purchase of Countrywide Financial Corp., which resulted in epic financial disaster for BofA and the financial industry as a whole.
These settlements mean BofA's fourth quarter 2012 profits, which it will announce next week, will be markedly smaller than expected.
According to the agreement, BofA will:
- Pay Fannie Mae $3.6 billion
- Buy back $6.75 billion of bad loans from Fannie Mae to clear claims the mortgage company made against BofA
- Pay Fannie $1.3 billion over foreclosure delays
Read more about these settlements on Thomson Reuter.
Read more InsideCounsel stories about the financial crisis:
U.S. government files $1 billion suit against Bank of America
Barney Frank defends JPMorgan against government lawsuit
Homeowners accuse 12 banks of manipulating Libor
Bank of America pays $2.43 billion in shareholder suit settlement
Lehman Brothers to pay another $10.5 billion to creditors
Citigroup will pay $590 million in settlement related to financial crisis
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