The Federal Housing Finance Agency, which regulates Fannie Mae and Freddie Mac, announced Wednesday afternoon a settlement with Bank of America for about $9.33 billion. The deal will end litigation over the bad mortgages issued leading up to the financial crisis.
The settlement is "an important step in helping restore stability to our broader mortgage market and moving to bring back the role of private firms in providing mortgage credit," said FHFA Director Melvin Watt, in a statement.
The federal agency still has claims in seven suits related to residential mortgage-backed securities.
"This is a fair and appropriate resolution, and we're pleased to move forward with this matter in the rear-view mirror," said Bradley Lerman, executive vice president and general counsel for Fannie Mae. "Fannie Mae remains focused on helping people to buy a house, rent an apartment or avoid foreclosure as we build a stronger housing finance system for the future."http://www.cnbc.com/id/101528427
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