Bank of America's Countrywide unit should pay the maximum penalty of $2.1bn for defective mortgage loans it sold to Fannie Mae and Freddie Mac in the run-up to the 2008 financial crisis, federal prosecutors told a judge in a court filing.
Citigroup paid $250m to taxpayer-owned Fannie Mae and Freddie Mac to settle a lawsuit over soured mortgage securities, the regulator of the two housing finance firms said on Thursday.
Wells Fargo has agreed to pay Fannie Mae $591m to resolve repurchase demands on loans originated before 2009 and sold to the government-backed firm.
Bank of America should pay the maximum penalty of $863m for selling defective loans to Fannie Mae and Freddie Mac, given the egregiousness of the fraud, U.S. prosecutors told a federal judge.
A U.S. housing regulator is seeking at least $6bn from Bank of America to settle civil claims the firm sold faulty mortgage bonds to government-backed finance companies Fannie Mae and Freddie Mac, according to a person with direct knowledge of the discussions
A former executive of Bank of America's Countrywide unit told a federal jury on Tuesday that she did not knowingly sell toxic mortgages to Fannie Mae and Freddie Mac in the run-up to the financial crisis.
Wells Fargo agreed to an $869m settlement with Freddie Mac to resolve repurchase claims on faulty loans sold to the government-backed firm before 1st January 2009.
And it's the last thing this firm needs right now.
HSBC said possible damages from a lawsuit filed by a U.S. regulator over improperly sold mortgage-backed securities could cost the bank as much as $1.6bn.
Bank of America, JPMorgan Chase and Royal Bank of Scotland are being pressed for multibillion-dollar payments to the US government over toxic mortgage-backed securities, according to people familiar with negotiations.