Bank Of America To Pay $3.6 Billion To Settle Mortgage Claims - Spokane, North Idaho News & Weather KHQ.com

Bank Of America To Pay $3.6 Billion To Settle Mortgage Claims

(Reuters) - Bank of America on Monday announced roughly $11.6 billion of settlements with mortgage finance company Fannie Mae and a $1.8 billion sale of collection rights on home loans, in a series of deals meant to help the bank move past its disastrous 2008 purchase of Countrywide Financial Corp.

The settlements and transactions and other charges will result in Bank of America posting only a small profit for 2012's fourth quarter. The bank is due to report results on January 17.

Bank of America is paying $3.6 billion to Fannie Mae and buying back $6.75 billion of bad loans from the mortgage company to clear up all claims that government-owned Fannie Mae had made against the bank.

Fannie Mae and its sibling, Freddie Mac, have been pushing banks to buy back loans they sold to the two companies that never should have been sold to them because the loans did not meet the companies' criteria for purchasing.

Bank of America said most of the settlement would be covered by reserves, and another $2.5 billion, before taxes, that it set aside in the fourth quarter.

A separate settlement over foreclosure delays will result in Bank of America paying $1.3 billion to Fannie Mae, the mortgage company said. Bank of America had already set aside money to cover most of that, but took another $260 million charge in the fourth quarter to cover the balance.

Bank of America also sold the rights to collect payments on about $306 billion of loans to Nationstar Mortgage Holdings and Walter Investment Management Corp. Nationstar is paying $1.3 billion for the right to service some $215 billion of loans, while Walter Investment is paying $519 million for the right to service about $93 billion of mortgages.

Reuters first reported that Bank of America was talking to Nationstar and Walter Investment on Friday.

(Reporting by Tanya Agrawal in Bangalore and David Henry in New York.; Editing by Dan Wilchins and Maureen Bavdek)

  • Most Popular StoriesMost Popular StoriesMore>>

  • Pedestrian lashes out, throws rock at woman in car

    Pedestrian lashes out, throws rock at woman in car

    Friday, July 21 2017 7:59 PM EDT2017-07-21 23:59:38 GMT

    SPOKANE, Wash. - A Spokane woman says she had a scary encounter Thursday morning with a man on the sidewalk. She was driving near Regal Street by Ferris High School when he lashed out and ended up throwing a rock at her. "It worries me that somebody is out there that can be that violent," she said. She wants to remain anonymous in fear of retaliation of what he might do. She says she was dropping off her son for a sports camp 

    >>

    SPOKANE, Wash. - A Spokane woman says she had a scary encounter Thursday morning with a man on the sidewalk. She was driving near Regal Street by Ferris High School when he lashed out and ended up throwing a rock at her. "It worries me that somebody is out there that can be that violent," she said. She wants to remain anonymous in fear of retaliation of what he might do. She says she was dropping off her son for a sports camp 

    >>
  • Biker comes face-to-face with bear on Canfield Mountain trail

    Biker comes face-to-face with bear on Canfield Mountain trail

    Friday, July 21 2017 9:20 PM EDT2017-07-22 01:20:31 GMT

    KOOTENAI COUNTY, Idaho - With it’s windy trails and scenic vistas. Nestled right above Coeur d’Alene, Canfield Mountain attracts all sorts of people. “It's a great area,” Tony Prka said. Prka is an avid Canfield Mountain bike-rider. He says he was riding like usual Tuesday night when all of a sudden. “I hit my brakes right away and then I was like 'man I think that was a cub' so I got off my bike and I started to run backwards,” he said. Not 

    >>

    KOOTENAI COUNTY, Idaho - With it’s windy trails and scenic vistas. Nestled right above Coeur d’Alene, Canfield Mountain attracts all sorts of people. “It's a great area,” Tony Prka said. Prka is an avid Canfield Mountain bike-rider. He says he was riding like usual Tuesday night when all of a sudden. “I hit my brakes right away and then I was like 'man I think that was a cub' so I got off my bike and I started to run backwards,” he said. Not 

    >>
  • Latah County murder suspects captured

    Latah County murder suspects captured

    Friday, July 21 2017 11:25 PM EDT2017-07-22 03:25:07 GMT

    MOSCOW, Idaho - The Ferry County Sheriff's Office has confirmed they have recovered the white 2002 Pontiac Grand Am connected to recent homicide in Latah County. The two teenage suspects, Keagan Tennant and Matthew McKetta, have been on the run from law enforcement since the body of Timothy Jacob Reeves was discovered earlier this week.

    >>

    MOSCOW, Idaho - The Ferry County Sheriff's Office has confirmed they have recovered the white 2002 Pontiac Grand Am connected to recent homicide in Latah County. The two teenage suspects, Keagan Tennant and Matthew McKetta, have been on the run from law enforcement since the body of Timothy Jacob Reeves was discovered earlier this week.

    >>
HD DOPPLER 6i
/