Bank Of America's $12 Billion Fraud Settlement With Fannie
From The Daily Bail
January 9, 2013 - 2:18am
"We thought this would be dragged out at least another two years."
Good discussion yesterday on Bloomberg. FBR banking analyst Paul Miller on BofA's agreement to pay Fannie Mae $11.7 billion to resolve home-loan repurchase claims.
BofA Settles Fraud With Fannie Mae For $12B, Moynihan Escapes Countrywide
Bank of America will make a $3.6 billion cash payment, spend $6.75 billion to buy back residential loans sold to Fannie Mae, and pay $1.3 billion in fees for taking too long to assist or foreclose on overdue borrowers, according to separate statements. Even after these costs and an additional $2.5 billion for expenses that include litigation and a separate regulatory settlement, the Charlotte, North Carolina-based lender said the fourth quarter was “modestly” profitable.
It’s the latest effort by Chief Executive Officer Brian T. Moynihan to cap...Continue reading this article »