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Sunday, November 23rd, 2014

Bank Of America to Pay $404M to Freddie Mac

Bank of America StockBank of America Corp. will pay $404 million to Freddie Mac to resolve all repurchase liabilities on home loans sold to the government-controlled mortgage company from 2000 to 2009, the bank said on Monday.

The settlement covers about 716,000 loans and compensates Freddie Mac for past losses and potential future losses related to denials, rescissions and cancellations of mortgage insurance, Freddie Mac said in a statement.

Bank of America will pay a net $391 million, reflecting a $13 million credit for prior repurchases and adjustments, Freddie Mac said.

Since 2010, Bank of America has agreed to pay more than $45 billion to settle various claims stemming from the U.S. housing and financial crisis.

Previously, Bank of America agreed with Freddie Mac to resolve representations and warranties claims related to loans that Countrywide Financial sold to Freddie Mac through 2008.

In January, the bank agreed to pay $3.6 billion to Fannie Mae, another government-controlled mortgage company, to resolve repurchase claims over Countrywide and Bank of America loans from 2000 to 2008.

The settlement on Monday is also unrelated to lawsuits against Bank of America by the Federal Housing Finance Agency, the conservator of Freddie Mac and Fannie Mae, to recover losses on more than $57 billion in mortgage securities that they bought. A bank spokesman declined to discuss that case.

Source: reuters.com

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