M. Rochan, International Business Times

Bank of America could face a $6bn fine for allegedly misleading US mortgage agencies Fannie Mae and Freddie Mac during the housing bubble, according to a US regulator.

A report by the Financial Times said that the Federal Housing Finance Agency (FHFA) is pursuing claims on behalf of the two housing agencies which back around half of the outstanding American home loans.

BofA has incurred more than $40bn in legal liabilities owing to its 2008 acquisition of Countrywide Financial, in the aftermath of the mortgage meltdown. The lender put away a further $300m for mortgage litigation in the latest quarter.

The FHFA has sued several banks for allegedly misrepresenting the quality of the collateral backing securities in the run-up to the 2008 financial crisis.

Read more here

Write A Comment

Your email address will not be published.

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Ready to get started?

Speak to a specialist at (888) 737-6344