BANKING

BofA agrees to pay Fannie Mae $3.6B in mortgage deal

BLOOMBERG FILE PHOTO/JIN LEE
BANK of AMERICA Corp. has agreed to pay $3.6 billion to Fannie Mae to resolve home-loan repurchase claims.
Posted 1/7/13

NEW YORK - Bank of America Corp., the second-biggest U.S. lender by assets, agreed to pay Fannie Mae $3.6 billion to resolve home-loan repurchase claims.

The lender will also pay $6.75 billion to repurchase residential mortgages sold to Fannie Mae, Charlotte, N.C.-based Bank of America said today in a statement. The deal will “substantially resolve outstanding claims for compensatory fees” between the two companies, according to the statement.

Fannie Mae, Freddie Mac and other buyers of mortgages have demanded compensation for loans created by Countrywide Financial Corp., which Bank of America acquired in 2008, claiming the loans were based on flawed data about the properties and borrowers. Losses from Countrywide, the largest U.S. mortgage lender as recently as 2007 before billions of dollars in soured loans prompted its sale to Bank of America, have continued to plague the lender, leading to more than $40 billion in costs.

“These agreements are a significant step in resolving our remaining legacy mortgage issues, further streamlining and simplifying the company and reducing expenses over time,” Bank of America Chief Executive Officer Brian Moynihan, 53, said in the statement.

Today’s agreement covers $300 billion in outstanding principal on loans sold to Fannie Mae between 2000 and 2008. The lender also agreed to sell servicing rights on $306 billion in home loans in separate deals.

Bank of America shares advanced 2.1 percent to $12.36 at 7:57 a.m. in New York.

Nationstar Mortgage Holdings Inc. said in a separate statement that it signed an agreement to acquire $215 billion in residential mortgage servicing rights from Bank of America for about $1.3 billion.

Calendar
PBN Hosted
Events

See the List of 2014 Winners. And save the date - September 10th - for the 3rd Annual Fastest Growing & Innovative Companies program at Rosecliff Mansion in Newport.
  • Healthiest Employers
    Thank you to all who attended the 3rd Annual Healthiest Employers Luncheon today ...
Advertisement
Purchase Data
Book of Lists
Lists
Book of Lists cover
PBN's annual Book of Lists has been an essential resource for the local business community for almost 30 years. The Book of Lists features a wealth of company rankings from a variety of fields and industries, including banking, health care, real estate, law, hospitality, education, not-for-profits, technology and many more.
Data icons
Data can be purchased as single lists, in either Excel or PDF format; the entire database of the published book, in Excel format; or a printed copy of the Book of Lists.
  • Purchase an e-File of a single list
  •  
  • Purchase an e-File of the entire Book of Lists database
  •  
  • Purchase a printed copy of the Book of Lists
  •  
    National
    Local
    Latest News
    Advertisement