Bank Of America To Pay $9.5 Bn Over Mortgage Bonds
New York (AFP) Wednesday, March 26, 2014 3:57:33 PM
Bank of America will pay $9.5 billion to settle US charges that it sold bad mortgage-backed securities to mortgage giants Freddie Mac and Fannie Mae ahead of the housing bust.
The settlement, arranged with the Federal Housing Finance Agency, which oversees Fannie and Freddie, involves securities sold by BofA as well as by Countrywide and Merrill Lynch, which were acquired by the bank.
The agreement covers four lawsuits alleging the BofA entities misled the two US mortgage giants about the quality of the underlying mortgages tied to $57.5 billion in securities sold to Freddie and Fannie.
Several other banks have also made payments to Fannie & Freddie.
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