Arab Today, arab today bank of america pays 116bn to settle mortgage mess
Last Updated : GMT 02:28:42
Arab Today, arab today
Arab Today, arab today

Fannie Mae: resolution in best interest of taxpayers

Bank of America pays $11.6bn to settle mortgage mess

Arab Today, arab today

Arab Today, arab today Bank of America pays $11.6bn to settle mortgage mess

Bank of America is guilty of selling fraudulent mortgages to Fannie Mae and others
Washington - Arabstoday

Bank of America is guilty of selling fraudulent mortgages to Fannie Mae and others The second-largest lender in the US, Bank of America, has agreed to pay more than $11 billion in restitutions for its role in the burst mortgage bubble that triggered the so-called financial crisis of 2008 .The Charlotte-based bank said on Monday that it had agreed to pay a total of around $11.65 billion (€8.83 billion) to settle claims on "toxic" residential home loans it sold to the US government mortgage agency Fannie Mae.
The settlement included a $3.6 billlion payment in cash to Fannie Mae, as well as the repurchasing of residential mortgages worth $6.75 billion.
"These agreements are a significant step in resolving our remaining legacy mortgage issues, further streamlining and simplifying the company and reducing our expenses over time," Bank of America's chief executive, Brian Moynihan, said.
Fannie Mae said in a separate statement on Monday that Bank of America would pay a further settlement of $1.3 billion to address mortgage servicing issues.
"A favourable resolution of this long-standing dispute between Fannie Mae and Bank of America is in the best interest of taxpayers," Fannie Mae's executive vice president, Bradley Lerman, said.
The US Justice Department ruled last October that Bank of America and its Countrywide Financial Corporation rushed through the processing of home loans and thus sold defective and fraudulent mortgages to Fannie Mae and the other US government agency Freddie Mac. Bank of America bought Countrywide, once the US' largest mortgage lender, in 2008.
Mortgage securities, involving many home loans bundled together into lump investments, became increasingly popular in the run up to the so-called "financial crisis" of 2008. When individual mortgage holders were unable to keep up with repayments, the values of these securities nosedived - helping spark the sudden economic downturn.
Seeking to capitalise on rising property prices prompted by easily-available credit, many lenders cut corners vetting house buyers, lending large sums to people who ultimately could not afford them.
Fannie Mae and Freddie Mac are believed to have lost around $300 billion in total on these securities, the lenders required a US government rescue worth a combined $180 billion to stay afloat.
Source: Deutsche Welle
 

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today bank of america pays 116bn to settle mortgage mess Arab Today, arab today bank of america pays 116bn to settle mortgage mess

 



Arab Today, arab today
Arab Today, arab today Hats, scarves add beauty to women

GMT 19:10 2017 Friday ,17 February

Hats, scarves add beauty to women
Arab Today, arab today Tourist guide reveals methods of tourist attractions

GMT 17:46 2017 Saturday ,18 February

Tourist guide reveals methods of tourist attractions
Arab Today, arab today To release new antiques collection

GMT 20:33 2017 Friday ,17 February

To release new antiques collection
Arab Today, arab today Leader Omar Abdel Rahman dies in US prison

GMT 19:00 2017 Sunday ,19 February

Leader Omar Abdel Rahman dies in US prison
Arab Today, arab today Murder of 2 reporters in Dominican Republic

GMT 22:45 2017 Thursday ,16 February

Murder of 2 reporters in Dominican Republic

GMT 09:20 2017 Friday ,17 February

Samsung heir arrested in corruption probe

GMT 10:26 2017 Thursday ,16 February

Dollar, equities stutter in Asia after Trump rally

GMT 08:45 2017 Thursday ,16 February

Hanjin saga reveals S.Korea corporate governance flaws

GMT 09:40 2017 Wednesday ,15 February

Heineken profits drained in 2016 by currency turmoil

GMT 09:10 2017 Tuesday ,14 February

Sharjah Chamber Eyes Strong Economic Ties with Belgium

GMT 08:23 2017 Tuesday ,14 February

Toshiba dives on shock loss-reporting delay

GMT 08:18 2017 Tuesday ,14 February

Banker-financier Mnuchin sworn in as US Treasury chief
View News in Arabic - Business: أخبار الأعمال
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Kidogo provides childcare for underserved

GMT 20:24 2017 Wednesday ,15 February

Kidogo provides childcare for underserved
Arab Today, arab today Tragic fluctuations of Bakhtiari's life revealed

GMT 06:50 2017 Wednesday ,15 February

Tragic fluctuations of Bakhtiari's life revealed
Arab Today, arab today London to tax old cars

GMT 14:06 2017 Friday ,17 February

London to tax old cars
Arab Today, arab today Pluto's unruly moons

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons
Arab Today, arab today Competes Sweden and Germans by S90

GMT 22:36 2017 Thursday ,16 February

Competes Sweden and Germans by S90
Arab Today, arab today Porsche reveals new 2018 Panamera

GMT 17:31 2017 Wednesday ,15 February

Porsche reveals new 2018 Panamera
Arab Today, arab today Actress Nadeen Al Rassi views art as her entity

GMT 07:30 2017 Saturday ,18 February

Actress Nadeen Al Rassi views art as her entity
Arab Today, arab today Teach monkeys to recognize themselves in mirror

GMT 20:41 2017 Wednesday ,15 February

Teach monkeys to recognize themselves in mirror

GMT 07:05 2017 Friday ,17 February

Singer Diana Karzon will issue a new album soon

GMT 06:40 2017 Friday ,10 February

MP calls for removing text from Islamic story

GMT 13:16 2017 Tuesday ,14 February

First fashion model with Down syndrome

GMT 10:26 2017 Tuesday ,14 February

Emergency UN meeting in Harare

GMT 14:04 2017 Tuesday ,14 February

"Lagom" new Swedish concept in interior design

GMT 12:07 2017 Thursday ,16 February

Bite-mimicking malaria vaccine

GMT 09:03 2017 Thursday ,16 February

Tour guide praises women’s beaches

GMT 13:12 2015 Saturday ,09 May

Sheikh Sultan opens Sharjah Centre

GMT 21:42 2017 Sunday ,12 February

Rania al-Ghazali designs candles of bubbles
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday