Bank of America reaches settlement with Fannie Mae
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Bank of America has reached a settlement with Fannie Mae on residential mortgage loans sold by the bank and its Countrywide unit to the agency ahead of the nation's 2008 financial crisis.
The settlement includes a $3.6 billion payment to Fannie Mae. Bank of America will also buy back some of the loans sold to Fannie Mae for $6.75 billion.
Its stock gained more than 2 percent in premarket trading.
Bank of America bought Countrywide Financial Corp. in July 2008, just before the financial crisis. Countrywide was a giant in mortgage lending, but was also known for approving risky loans.
Bank of America Corp. also said Monday that it is also selling mortgage servicing rights on about 2 million loans.
The bank will take some charges, but expects "modestly positive" fourth-quarter earnings.
Thursday, May 23 2013 11:39 AM EDT2013-05-23 15:39:41 GMT
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Gov. Andrew Cuomo and St. Regis Mohawk tribal leaders have signed an agreement to ensure the Mohawks keep their exclusive casino territory in northern New York while paying the state $30 million in gambling
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