BofA To Pay $9.3B To Settle Fannie, Freddie MBS Claims

By Dan Ivers (March 26, 2014, 6:20 PM EDT) -- Bank of America Corp. has agreed to pay $9.3 billion to settle lawsuits filed in New York and California federal courts by the Federal Housing Finance Agency alleging the bank misrepresented billions of dollars in mortgage-backed securities sold to Fannie Mae and Freddie Mac that led to the financial crisis.

In exchange for dismissing the four suits, filed by the FHFA in its capacity as conservator for Fannie Mae and Freddie Mac, BofA and subsidiaries Countrywide Financial Corp. and Merrill Lynch will pay $5.83 billion to the mortgage finance titans, and purchase another $3.2 billion in mortgage-backed securities from the companies,...

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