Bank of America, Freddie Mac reach an agreement
Bank of America has reached a $404 million mortgage repurchase agreement with Freddie Mac on Monday morning, which covers outstanding as well as potential residential mortgage claims through the end of 2009 and will make-whole claims tied to loans sold to Freddie Mac between January 1, 2000 and December 31, 2009.
Additionally, the settlement outlines that Bank of America will compensate Freddie Mac for specific past loan losses and potential future losses tied to denials, rescissions, as well as cancellations of mortgage insurance.
This settlement agreement is another in the long line of agreements between banks and Fannie/Freddie surrounding loans that were illegal, fraudulent, or contained faulty origination documents, a substantial portion of which surrounds the robosignature debacle that poisoned the entire chain of title.
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Prepared by Tara Steele of AGBeat.com