Bank of America Corporation (BAC), the second largest bank in the US in terms of total assets, agreed to settle with the Federal Housing Finance Agency (FHFA) – which regulates the Federal National Mortgage Association (FNMA) and the Federal Home Loan Mortgage Corporation (FMCC) – for $9.5 billion over a dispute regarding risky mortgage securities sold to Fannie Mae and Fre
Bank of America and Fannie Mae have agreed to settle legal issues stemming from the subprime mortgage crisis. The bank will pay Fannie Mae $3.6 billion in cash and will also spend $6.7 billion to repurchase certain mortgages sold to Fannie Mae.» E-Mail This » Add to Del.icio.us
Bank of America will pay $3.6 billion in cash to Fannie Mae. Apple struggles to overturn a ruling allowing Samsung to sell its smartphones. Winner from the lottery poisoned with cyanide. Hawaiian Airlines will deal with Airbus for 16 new A321neo planes.
Taxpayers are already on the hook for $180 billion in losses at Fannie Mae and Freddie Mac. That number is going to rise, perhaps significantly.
The clever synonym for more taxpayer losses is "treasury Advance". With that understanding, please consider Fannie Mae's Losses Narrow but Treasury Advance Requested.
Gary Townsend submits:On Monday, Ally Financial (formerly GMAC ResCap) paid $462 million to settle claims on $292 billion in mortgages sold to government-sponsored Fannie Mae (FNMA.OB), equal to a putback loss of 0.55% on $84 billion in unpaid principal balances. Last May, Ally settled with Freddie Mac (FMCC.OB), but for an undisclosed amount.