Bank of America settles $9.5 billion lawsuit with FHFA
Newscast Media WASHINGTON—Embattled Bank of America has reached a settlement
with the Federal Housing Finance Agency (FHFA) in a lawsuit that was filed against
the bank for its fraudulent mortgage-backed securities that led to the housing crisis.
Under terms of the deal, BofA agreed to make cash payments of about $6.3 billion to
Fannie Mae and Freddie Mac as well as to purchase certain Residential
Morgage-Backed Securities (RMBS) at fair market value, or about $3.2 billion.
In return, the FHFA agreed to dismiss pending lawsuits and release BofA and its
affiliates from all securities law and fraud claims. CONTINUE TO FULL STORY>>