(NEW YORK) — Bank of America agreed on Monday to pay Fannie Mae billions to settle claims stemming from the housing crisis.
The Charlotte, N.C.-based bank will pay more than $3 billion in cash and buy back an additional $7 billion worth of mortgages sold between 2000 and 2008. Fannie Mae said the loans were flawed and it accused Bank of America and its subsidiary, Countrywide, of misrepresenting their quality.
Since Bank of America bought Countrywide, it has been responsible for $40 billion in costs. The bank’s chief executive called this agreement “a significant step” in resolving mortgage issues.
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Madison Park, Keith Allen and Andreas Preuss, CNN