Fannie Mae-No Politics (FNMA)

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Bank of America Announces Settlements With Federal Housing Finance Agency (FHFA) and New York Attorney General

CHARLOTTE, N.C., Mar 26, 2014 (BUSINESS WIRE) -- Bank of America today announced it reached a settlement with the Federal Housing Finance Agency (FHFA) as conservator of Fannie Mae and Freddie Mac to resolve all of FHFA’s residential mortgage-backed securities (RMBS) litigation with Bank of America, as well as other legacy contract claims.

The FHFA settlement resolves four lawsuits FHFA filed against Bank of America, Countrywide, and Merrill Lynch entities beginning in September 2011, alleging they falsely represented that the underlying mortgage loans complied with certain standards. Approximately $57.5 billion (in purchase cost) of private-label RMBS purchased by Fannie Mae and Freddie Mac are covered by the settlement.

Under terms of the settlement, Bank of America will make cash payments totaling approximately $6.3 billion to Fannie Mae and Freddie Mac. In addition, Bank of America will purchase certain RMBS at fair market value (approximately $3.2 billion). In return, FHFA’s pending lawsuits will be dismissed with prejudice and Bank of America and its affiliates will be released from all securities law and fraud claims, as well as certain other claims related to the private-label RMBS in dispute.


http://www.marketwatch.com/story/bank-of-america-announces-settlements-with-federal-housing-finance-agency-fhfa-and-new-york-attorney-general-2014-03-26?reflink=MW_news_stmp