Bank of America to Pay More Than $10 Billion to Fannie Mae

Bank of America agreed to pay more than $10 billion to Fannie Mae to settle claims over troubled mortgages.

Bank of America agreed Monday to pay roughly $10 billion to Fannie Mae in a settlement involving troubled mortgages issued by the bank’s Countrywide Financial unit.

Under the terms of the recent agreement, Bank of America said it will pay the housing finance giant $3.6 billion and will also spend $6.75 billion to buy back mortgages from Fannie Mae at a discount to their original value. All of the lender’s disputes with Fannie Mae would be resolved. The bank settled its fight with Freddie Mac, the other government-owned mortgage finance giant, in 2011.

“Together, these agreements are a significant step in resolving our remaining legacy mortgage issues, further streamlining and simplifying the company and reducing expenses over time,” Brian Moynihan, Bank of America’s chief executive, said in a statement.

Countrywide is the same subsidiary that agreed to pay $335 million to settle allegations that its financial unit discriminated against qualified Black and Hispanic borrowers between 2004 and 2008.

BET National News - Keep up to date with breaking news stories from around the nation, including headlines from the hip hop and entertainment world. Click here to subscribe to our newsletter. 

(Photo: AP Photo/Charles Krupa)

Latest News

Subscribe for BET Updates

Provide your email address to receive our newsletter.

By clicking Subscribe, you confirm that you have read and agree to our Terms of Use and acknowledge our Privacy Policy. You also agree to receive marketing communications, updates, special offers (including partner offers) and other information from BET and the Paramount family of companies. You understand that you can unsubscribe at any time.