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.