Skip to main content

BofA Reaches Final $404 Million Legacy Loan Agreement With GSE

Dec 02, 2013

Bank of America has announced an agreement with Freddie Mac to resolve all remaining representations and warranties claims for residential mortgage loans sold to Freddie Mac through the end of 2009. Under terms of the agreement, Bank of America will pay Freddie Mac a total of $404 million (less credits of $13 million) to resolve all outstanding and potential mortgage repurchase and make-whole claims related to loans sold to Freddie Mac from Jan. 1, 2000 to Dec. 31, 2009, and to compensate Freddie Mac for certain past losses and potential future losses relating to denials, rescissions and cancellations of mortgage insurance. The payments are fully covered by existing reserves as of Sept. 30, 2013. Previously, Bank of America announced an agreement with Freddie Mac to resolve all outstanding and potential representations and warranties claims related to whole loans sold by legacy Countrywide to Freddie Mac through 2008, and a pair of agreements with Fannie Mae that, taken together, resolved all outstanding and potential representations and warranties claims related to whole loans sold by legacy Countrywide and legacy Bank of America to Fannie Mae through 2008. With this settlement, Bank of America has resolved all outstanding and potential representations and warranties claims on whole loans sold by legacy Bank of America and Countrywide to Fannie Mae and Freddie Mac through the dates outlined above, subject to certain exceptions which Bank of America does not believe are material.
About the author
Published
Dec 02, 2013
Some Question Lenders’ And Others’ Readiness To Use VantageScore 4.0

Following FHFA announcement Tuesday, doubts arise regarding potential changes that may be needed to move to VantageScore credit scoring

HUD Freezes Foreclosures On FHA Mortgages In Texas Flood Zone

Kerr County homeowners among hardest hit in disaster that’s claimed more than 100 lives

Jul 09, 2025
Fannie, Freddie Now Allow Lenders To Use VantageScore 4.0

Lenders will keep tri-merge credit scoring model; what this shift means

President Trump Signs Big Beautiful Bill — Here's What It Means For Mortgage And Housing

What you need to know about the law as a mortgage professional and share with your clients

FHFA Chief Officially Calls For Investigation Of Federal Reserve Chairman Powell

Alleges Powell lied in testimony to Congress regarding Fed building renovations, says Fed Chair should be fired

BBB Will Impact Homeowners, Buyers

U.S. House and Senate must agree on certain tax, mortgage insurance premium deductions