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BofA settles with Freddie Mac for $404M

  • The $404M settlement (less credits of $13M for repurchases already made) is over reps and warranties on 716K single-family mortgages originated (between 2000-2009) by Bank of America (BAC) and sold to Freddie Mac (FMCC).
  • Any payment made by BofA is fully covered by the bank's existing reserves. With this deal, says the bank, BofA has resolved all outstanding potential rep and warranty claims by the GSEs on loans sold by both it and Countrywide from 2000-2009.
  • BAC +0.1% premarket.
  • Press release
Comments (2)
  • DeepValueLover
    , contributor
    Comments (8157) | Send Message
     
    After this stuff is settled people can finally start to pay attention to the earnings power of these entities.

     

    The price will be 2x the current levels when most investors consider them safe, however.
    2 Dec 2013, 08:26 AM Reply Like
  • gwynfryn
    , contributor
    Comments (3886) | Send Message
     
    Certainly, but it's a question of when; better to trade this for the near future, because it's not over yet...
    3 Dec 2013, 09:03 AM Reply Like
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