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. Also, 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. That is 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. The payment is over foreclosure delays. The bank also sold the rights to collect payments on about $306 billion of loans to Nationstar Mortgage Holdings and Walter Investment Management.
If you have questions about foreclosure, loan modification, bankruptcy, or other alternatives, please feel free to call my office at 888-886-0020. Or, send an e-mail to emil@fleysherlaw.com, or complete the contact form below.
