Bank of America Corp Reaches $11.6 Billion Settlement With Federal National Mortgage Association (Fannie Mae)-Reuters

Reuters reported that Bank of America Corp has entered an $11.6 billion settlement to end Federal National Mortgage Association (Fannie Mae)'s claims that the bank improperly sold it mortgages that later soured, and to resolve problems with foreclosures, the companies said. The settlement is a step forward for Bank of America toward resolving claims from investors who want the bank to buy back loans that its Countrywide Financial subsidiary sold to them during the housing boom, many of which later went bad. The agreement largely covers the $11.2 billion of claims that government-owned finance company Fannie Mae had against the bank, which represented about 44% of the bank's total pending claims at the end of the third quarter.