"Bank of America is paying $6.3 billion to settle a lawsuit arising out of troubled mortgage-backed securities it cobbled together and sold to Fannie Mae and Freddie Mac in the run-up to the financial crisis.
The bank agreed on Wednesday to pay that sum
to settle a lawsuit filed on behalf of the two government-sponsored
mortgage finance firms by their regulator, the Federal Housing Finance
Agency. As part of the settlement, Bank of America will also repurchase
mortgage securities from Fannie and Freddie that are valued at about
$3.2 billion.
to settle a lawsuit filed on behalf of the two government-sponsored
mortgage finance firms by their regulator, the Federal Housing Finance
Agency. As part of the settlement, Bank of America will also repurchase
mortgage securities from Fannie and Freddie that are valued at about
$3.2 billion.
The agreement covers what are known as
private-label mortgage-backed securities sold by Bank of America and its
affiliated entities like Countrywide Financial and Merrill Lynch."
private-label mortgage-backed securities sold by Bank of America and its
affiliated entities like Countrywide Financial and Merrill Lynch."
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