CHARLOTTE-Locally-based Bank of America has agreed to pay Freddie Mac $404 million to resolve repurchase claims from mortgages sold before the financial crisis.
The agreement announced by the two firms on Monday covers approximately 716,000 Bank of America loans from Jan 1, 2000 to Dec. 31, 2009, according to Bloomberg News.
The payment, minus credits of $13 million the bank already paid to McLean, VA-based Freddie Mac, will be covered by Bank of America's current reserves.
“We are pleased to have reached this agreement with Bank of America, which now allows both companies to move forward,” Freddie Mac CEO Donald Layton stated. “We continue to make very good progress in recovering funds that are due to the American taxpayer.”
The settlement with Freddie Mac completes Bank of America's efforts to resolve representation-and-warranty claims for loans sold to government-sponsored enterprises Fannie Mae and Freddie Mac before the financial crisis. The lender has previously reached a pair of deals with Fannie Mae, including an $11.7-billion agreement announced in January 2013. See story at Bloomberg News.
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John Jordan
John Jordan is a veteran journalist with 36 years of print and digital media experience.
