BofA reaches agreement with Freddie Mac, Fannie Mae

Former Countrywide Logo

BofA reaches multi-billion dollar to settle housing crisis fallout with Fannie Mae and Freddie Mac related to Countrywide. (Image via Wikpedia)

 

 

By Aaron Smith, staff writer
CNNMONEY.COM —

Bank of America (Symbol : BAC) has reached a nearly $3 billion agreement with Freddie Mac (Symbol : FMCC) and Fannie Mae (Symbol : FNMA) to resolve a faulty mortgage loan dispute involving Countrywide Financial Corp.

Bank of America (Symbol : BAC) said that it paid nearly $1.3 billion to Freddie Mac and more than $1.3 billion to Fannie Mae on Dec. 31.

The purpose of this agreement is to settle an issue of bad mortgages sold by Countrywide to Fannie Mae and Freddie Mac related to the housing crisis of 2008.

Bank of America said it expects to take a $2 billion charge to fourth-quarter results.

“Our goals remain the same: put these issues behind us; focus on serving customers and clients; and continue to help distressed homeowners facing difficult times,” said Bank of America Chief Executive Brian Moynihan.  – CNN Money News

 

More big paydays at Fannie, Freddie – Street Sweep: Fortune’s Wall Street Blog http://bit.ly/hpa4AV

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