Fannie Mae Preferred S (FNMAS)

[skibrian]

oh -- Bank of America will pay Fannie $3.6 billion in cash and pay roughly $6.75 billion to repurchase about 30,000 mortgage loans, which is to be covered by existing mortgage putback reserves, along with "an additional $2.5 billion (pretax) in representations and warranties provision recorded in the fourth quarter of 2012."

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The bank agreed to "settle substantially all of Fannie Mae's outstanding and future claims for compensatory fees arising out of past foreclosure delays," which is "expected to be covered by existing reserves and an additional provision of $260 million (pretax) recorded in the fourth quarter of 2012."