Bank of America in $10 Billion Foreclosure Settlement With Fannie Mae
Written by Emil Fleysher | January 11, 2013 | Foreclosure
As part of Bank of America’s continued effort to settle with Fannie Mae, the bank has announced approximately $11.6 billion dollars worth of settlements as well as a $1.8 billion dollar sale for the collection rights to home loans. Bank of America is paying $3.6 billion to Fannie Mae to buy back $6.75 billion in bad loans that the bank had mistakenly sold to the government. This deal will successfully clear up all claims filed against Bank of America by the government-owned company. These and other purchases will result in only a small fourth quarter profit for BofA in 2012 despite most of the settlement money being covered by their reserves. A separate settlement between Bank of America and Fannie Mae requires the payment of $1.3 billion to Fannie Mae over foreclosure delays. Bank of America also sold the rights to collect payments on about $306 billion of loans to Nationstar Mortgage Holdings and Walter Investment Management.
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