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Mon Jan 7, 2013, 09:57 AM

Bank of America to Pay $10 Billion in Settlement With Fannie Mae

Bank of America to Pay $10 Billion in Settlement With Fannie Mae

By MICHAEL J. DE LA MERCED and JESSICA SILVER-GREENBERG

Bank of America agreed on Monday to pay more than $10 billion to Fannie Mae to settle claims over troubled mortgages that soured during the housing crash, mostly loans issued by the bank’s Countrywide Financial subsidiary.

Under the terms of the pact, Bank of America will pay Fannie Mae $3.6 billion, and will also spend $6.75 billion to buy back mortgages from the housing finance giant at a discount to their original value....The bank had settled its fight with Freddie Mac, the other government-owned mortgage giant, in 2011.

<...>

The deal on Monday helps the bank move away from its troubled mortgage business. Still, the bank’s attempts to resolve other costly mortgage litigation have so far been stymied. Looking to appease investors that sued the bank for losses when mortgages packaged into securities imploded during the financial crisis, the bank agreed to pay $8.5 billion in June 2011. But the settlement, which would help mollify investors including the Federal Reserve Bank of New York and Pimco, has been stalled.

Further thwarting Bank of America’s retreat from the mortgage business, federal prosecutors sued the bank in October, accusing it of churning through loans so quickly that quality controls were virtually forgotten. The Justice Department sued the bank under a law that could mean Bank of America could pay well more than $1 billion to settle.

- more -

http://dealbook.nytimes.com/2013/01/07/bank-of-america-to-pay-10-billion-in-settlement-with-fannie-mae/



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Reply Bank of America to Pay $10 Billion in Settlement With Fannie Mae (Original post)
ProSense Jan 2013 OP
slackmaster Jan 2013 #1
No Compromise Jan 2013 #2
No Compromise Jan 2013 #3
ProSense Jan 2013 #4
ProSense Jan 2013 #6
leftstreet Jan 2013 #5
Festivito Jan 2013 #7

Response to ProSense (Original post)

Mon Jan 7, 2013, 09:59 AM

1. But not a penny to me for the several thousand dollars in damage it did to my finances last year

 

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Response to ProSense (Original post)

Mon Jan 7, 2013, 10:23 AM

2. Fannie, whose CEO Tim Mayopoulous was BofA's former General Counsel

 


Wow, I'm sure the American people got a good settlement there.


And am I reading this right?

The majority of the settlement is for BofA to buy back homes on the cheap.

"spend $6.75 billion to buy back mortgages from the housing finance giant at a discount to their original value"

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Response to No Compromise (Reply #2)

Mon Jan 7, 2013, 11:19 AM

3. no answer from prosense?

 

Do you really think this is a good settlement?

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Response to No Compromise (Reply #3)

Mon Jan 7, 2013, 11:30 AM

4. Yes.

Happy?

I mean, WTF?

Where did you ask me a question?

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Response to No Compromise (Reply #3)

Mon Jan 7, 2013, 11:37 AM

6. Now, I'll answer your question

The article doesn't include the terms of the deal, and it doesn't indicate (at least not to me) if this is the full settlement or what's next.

Also, I still think Bank of America should be broken up.

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Response to ProSense (Original post)

Mon Jan 7, 2013, 11:32 AM

5. So they get to buy back properties and restart the bubble?

What. the. fuck.

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Response to ProSense (Original post)

Mon Jan 7, 2013, 04:19 PM

7. Repubs loaded FMFM with the worst loans, then pointed to it as a bad government idea.

The payback should include jail time and ownership of their bank by We The People.

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