Bank of America agreed to pay $9.33 billion to put to rest a long-running mortgage securities dispute with the Federal Housing Finance Agency, which accused the lender of falsely representing loans that went south when the housing bubble burst.
The FHFA oversees Fannie Mae and Freddie Mac.
In 2011, the federal regulator had launched lawsuits against 18 different financial institutions, claiming they intentionally downplayed risks associated with their mortgage securities’ sales to Fannie Mae and Freddie Mac. The loans ultimately took billions of dollars in losses.
Bank of America is going to settle the matter and pay out $6.3 billion to the federal agency and spend another $3 billion to buy securities from Fannie Mae and Freddie Mac, The Washington Post reported.
• Cheryl K. Chumley can be reached at cchumley@washingtontimes.com.
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