Jan. 8, 2013 – Bank of America reached an $11.6 billion settlement with Fannie Mae Monday over mortgage sold to the enterprise during the housing finance boom and it party to an $8.5 billion settlement announced the same day over wrongful foreclosure practices, Associated Press reported.
BofA is set to pay Fannie Mae $3.6 billion in cash and to repurchase $6.75 billion in mortgages that the bank and its subsidiary, Countrywide Financial, sold to the entity from 2000 through 2008. It will pay Fannie Mae $1.3 billion for taking too long to address foreclosures, the report said. The bank will be buying back some 30,000 loans. The settlement, approved by the Federal Housing Finance Agency, also clears the way for BofA’s sale of servicing rights for some 1 million loans.
The other settlement, worked out by federal regulators and 10 major banks and mortgage companies, affects up to 3.8 million people in foreclosure in 2009 and 2010, the report said. The report says an estimated 400,000 may have payments coming to them. (See related story.)