Bank of America Corp. mentioned its $2.8 billion in accords with Fannie Mae and Freddie Mac, the government-owned firms pushing lenders to repurchase soured mortgages, would be a “necessary step” in the housing recovery.
The biggest U.S. bank by assets announced Jan. three that it had “largely addressed” liabilities in the two mortgage- financing firms by paying Fannie Mae $1.5 billion and giving Freddie Mac $1.three billion. The agreements may have shortchanged the U.S. government, which took over the two firms in a 2008 rescue, Representative Maxine Waters mentioned late yesterday.
“Our agreements with Fannie Mae and Freddie Mac are a crucial step toward the best recovery of the housing market,” Jerry Dubrowski, a spokesman for that Charlotte, North Carolina-based bank, mentioned right now in an e-mail. “We have taken a leadership role in answering the housing crisis.”
Fannie Mae and Freddie Mac had been trying to recoup losses on mortgages they bought that they say had been made up of faulty information, which includes details about borrowers’ income and home values. Bank of America received a lot more than $21 billion in demands to buy back loans from the two firms. The financial institution surged 6.4 percent, its biggest grow in practically eight months, in New York trading on Jan. three after announcing the settlements.
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