Bank of America to pay US$11.6 billion in Fannie Mae deal
Bank of America has reached a US$11.6 billion settlement with mortgage-finance giant Fannie Mae to settle a long-running standoff over soured mortgage loans.
The settlement includes a $3.5 billion cash payment and US$6.8 billion in repurchases of soured loans.
Bank of America has also agreed to pay over $1 billion in fines related to the bank's inadequate processing of loan payments.
Separately, ten banks agreed to a settlement worth US$8.5 billion with federal banking regulators over improper processing of foreclosed loans.
US regulators said the mortgage lenders include Bank of America, Citibank and JP-Morgan Chase.