Bank of America also agreed to make a cash payment to Fannie Mae to settle substantially all of Fannie Mae’s outstanding and future claims for compensatory fees arising out of past foreclosure delays. This payment is expected to be covered by existing reserves and an additional provision of $260 million (pretax) recorded in the fourth quarter of 2012.Together, these actions described above are expected to reduce Bank of America’s pretax income by approximately $2.7 billion in the fourth quarter of 2012.
Bank Of America Announces Settlement With Fannie Mae To Resolve Agency Mortgage Repurchase Claims On Loans Originated And Sold Directly To Fannie Mae Through December 31, 2008
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