Bank of America to pay Freddie Mac $404 million in mortgage settlement

Bank of The usa Corp pays $404 million to Freddie Mac to get to the bottom of all repurchase liabilities on dwelling loans sold to the federal government-controlled mortgage firm from 2000 to 2009, the financial institution stated on Monday. The agreement covers about 716,000 loans and compensates Freddie Mac for previous losses and attainable future losses related to denials, rescissions and cancellations of loan insurance coverage, Freddie Mac said in a commentary. Bank of The usa will pay a net $391 million, reflecting a $13 million credit for prior repurchases and adjustments, Freddie Mac stated. Because 2010, Financial institution of The united states has agreed to pay more than $forty five billion to settle quite a lot of claims stemming from the U.S. housing and financial main issue.