Tags: bankofamerica | fhfa | mortgage | lawsuit

BofA's FHFA Mortgage Suit Dropped After $9.5 Billion Pact

Wednesday, 02 Apr 2014 07:48 AM

U.S. housing regulators abandoned their lawsuit against Bank of America Corp.’s Merrill Lynch unit as part of a $9.5 billion settlement resolving allegations the bank misrepresented loans packaged into bonds.

The bank and the Federal Housing Finance Agency filed papers in Manhattan federal court dropping the suit, a step in putting the financial crisis behind the firm. Charlotte, North Carolina-based Bank of America announced the settlement March 26.

Under the agreement, the lender will pay $6.3 billion in cash to Fannie Mae and Freddie Mac to resolve lawsuits claiming it misrepresented loans packaged into bonds that were bought by the U.S.-owned mortgage firms. The company also said it will buy back about $3.2 billion of mortgage bonds from them.

Chief Executive Officer Brian T. Moynihan, 54, has spent more than $50 billion to resolve claims related to mortgages, most tied to his predecessor’s 2008 purchase of Countrywide Financial Corp.


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U.S. housing regulators abandoned their lawsuit against Bank of America Corp.'s Merrill Lynch unit as part of a $9.5 billion settlement resolving allegations the bank misrepresented loans packaged into bonds.
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2014-48-02
Wednesday, 02 Apr 2014 07:48 AM
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