Bank of America announced on Monday that it had reached a settlement with Freddie Mac to resolve issues related to residential mortgages the bank sold to Freddie up to 2009, effectively ending all contractual disputes between the two on loans issued before the financial crisis.
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.
Citigroup has agreed to pay Freddie Mac $395m to resolve repurchase claims on soured mortgages sold to the government-backed firm over more than a decade.
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.
Easy come, easy go.