- 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