Nov 12 Bank of America is in talks with
Freddie Mac to resolve disputes involving more than
$1.4 billion in defective mortgages that Freddie wants the bank
to take back, the Wall Street Journal reported, citing people
familiar with the matter.
The settlement, if reached, would be the second such
agreement between Bank of America and Freddie since 2011,
according to the Journal.
The deal would largely shield the bank from any future
repurchase demands from Freddie stemming from loans sold before
2012, the paper said.
The Journal said that the terms of the potential settlement
could not be determined. Bank of America is hoping to settle
before the end of the year, the WSJ said. ()
Last week, the U.S. government urged that Bank of America
pay $863.6 million in damages after a federal jury found it
liable for fraud over defective mortgages sold by its
Freddie Mac and BofA could not immediately be reached for
comment outside of regular U.S. business hours.