BofA Coughs Up $10 Billion
MANHATTAN (CN) - Bank of America will pay $10 billion to settle Fannie Mae mortgage claims, many of which BofA acquired when it bought Countrywide Financial, the bank said this morning.
Bank of America will pay Fannie Mae $3.6 billion and another $6.75 billion to buy back mortgages it sold to Fannie Mae, the bank said.
Bank of America said the deal would settle all of Fannie Mae's claims against it stemming from the Countrywide/BofA mortgage fiasco.
Bank of America bought Countrywide in 2008, a purchase that already has cost BofA $40 billion.
Angelo Mozilo, founder and CEO of Countrywide, paid the SEC $67.5 million in fines in an inside trading settlement - a fraction of his estimated net worth of $600 million. Countrywide paid $20 million of that. Mozilo was not criminally charged.