Bad Loan Reviews May Have Cost Freddie Big In BofA Deal

Law360, New York (September 27, 2011, 6:16 PM EDT) -- The Federal Housing Finance Agency failed to act on reported flaws in Freddie Mac's loan review process that may have let Bank of America Corp. avoid paying for billions of dollars in mortgage repurchase claims as part of a $1.35 billion settlement, an agency watchdog said Tuesday.

In a report evaluating oversight of a deal Freddie Mac reached on pending and future mortgage repurchase claims against BofA, the agency's Office of Inspector General said senior FHFA management failed to address significant concerns presented by Freddie Mac's...
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