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Bank of America Announces Agreement with Freddie Mac on Mortgage Repurchase Claims

Bank of America today announced an agreement with the Federal Home Loan
Mortgage Corporation (Freddie Mac) to resolve all remaining
representations and warranties claims for residential mortgage loans
sold to Freddie Mac through the end of 2009.

Under terms of the agreement, Bank of America will pay Freddie Mac a
total of $404 million (less credits of $13 million) to resolve all
outstanding and potential mortgage repurchase and make-whole claims
related to loans sold to Freddie Mac from January 1, 2000 to December
31, 2009, and to compensate Freddie Mac for certain past losses and
potential future losses relating to denials, rescissions and
cancellations of mortgage insurance. The payments are fully covered by
existing reserves

See full press release

Posted-In: News Guidance Financing Contracts Legal Management Global

 

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