BofA to Pay $404 Million to Settle Mortgage Dispute
By Tanya Agrawal
Bank of America said it settled all claims with Freddie Mac arising from residential mortgages sold to the government-backed housing agency through the end of 2009.
Bank of America (BAC) will pay $404 million to settle claims related to loans sold to Freddie Mac from Jan. 1, 2000 to Dec. 31, 2009, and to compensate for certain past losses and potential future losses relating to denials, rescissions and cancellations of mortgage insurance.
The payments are fully covered by the company's reserves, Bank of America said in a statement Monday.
Last month, the U.S. government urged Bank of America to pay $863.6 million in damages after a federal jury found it liable for fraud over defective mortgages sold by its Countrywide unit.