U.S. housing regulators seek over $6 billion from BofA: FT

Sun Oct 20, 2013 4:46pm EDT

A customer stands at an ATM machine at a Bank of America office in Burbank, California August 19, 2011. REUTERS/Fred Prouser

A customer stands at an ATM machine at a Bank of America office in Burbank, California August 19, 2011.

Credit: Reuters/Fred Prouser

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(Reuters) - U.S. housing regulators are looking to fine Bank of America more than $6 billion for its role in misleading mortgage agencies during the housing boom, compared with the $4 billion to be paid by JPMorgan Chase & Co, the Financial Times reported on its website, citing people familiar with the matter.

The FT said the Federal Housing Finance Agency (FHFA), pursuing claims on behalf of finance agencies Fannie Mae and Freddie Mac that back about half the existing U.S. home loans, are seeking the penalty. (link.reuters.com/muc93v)

FHFA and Bank of America (BofA) could not be reached for comment outside of regular business hours.

Countrywide Financial Corp, the mortgage lender acquired by BofA in July 2008, has cost the bank more than $40 billion in litigation expenses and other charges linked to its bad subprime mortgages. The bank set aside an additional $300 million for mortgage litigation in the latest quarter.

JPMorgan reached a tentative $4 billion deal with the FHFA on Friday to settle claims that the bank misled government-sponsored mortgage agencies about the quality of mortgages it sold them, according to a person familiar with the matter.

JPMorgan also reached a tentative $13 billion deal with the U.S. Justice Department and other government agencies to settle investigations into bad mortgage loans the bank sold to investors before the financial crisis, a source familiar with the talks told Reuters on Saturday.

(Reporting by Richa Naidu in Bangalore; Editing by Alistair Lyon)

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Comments (2)
CharlesReed wrote:
It the same for each of these outfits and Wells Fargo no different and one only has to look and the Washington Mutual Bank government loans Wells Fargo Bank is servicing only were the fraudulently foreclose using forgeries to assignment the loans to themselves illegally getting on title. Once on title they perform this illegal foreclose getting the proceeds and then they submit a False Claim to the Federal Government sticking the US Taxpayer with the bill!

I been waiting a long time for this mess to come to the light!

Oct 20, 2013 9:35pm EDT  --  Report as abuse
OnAnIsland wrote:
This is fall out from the Countrywide case where ALL claims were settled by the SEC for $67.5 million, later reduced to $20 million. Algelo Mozilo walked away untouchable in spite of selling the identity’s of thousands of people to Spokeo. Senators Christopher Dodd, Kent Conrad and relatives of Nancy Pelosi had received special “treatment” as well as administrators of Fannie Mae and HUD. The Department of Justice agreed to the SEC settlement and has failed to prosecute any of the others except involved for one small fine on Spokeo for disclosing confidential information. So now the DOJ wants MORE money? But they have blocked every legal avenue for the people who were the victims from recovering any compensation.

Oct 20, 2013 9:39pm EDT  --  Report as abuse
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