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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsBank 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 banks 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 banks 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 Americas 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/
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 banks 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 banks 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 Americas 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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Bank of America to Pay $10 Billion in Settlement With Fannie Mae (Original Post)
ProSense
Jan 2013
OP
But not a penny to me for the several thousand dollars in damage it did to my finances last year
slackmaster
Jan 2013
#1
Repubs loaded FMFM with the worst loans, then pointed to it as a bad government idea.
Festivito
Jan 2013
#7
slackmaster
(60,567 posts)1. But not a penny to me for the several thousand dollars in damage it did to my finances last year
No Compromise
(373 posts)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"
No Compromise
(373 posts)3. no answer from prosense?
Do you really think this is a good settlement?
ProSense
(116,464 posts)4. Yes.
Happy?
I mean, WTF?
Where did you ask me a question?
ProSense
(116,464 posts)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.
leftstreet
(36,103 posts)5. So they get to buy back properties and restart the bubble?
What. the. fuck.
Festivito
(13,452 posts)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.