FHFA seeks at least $6 billion from BAC
Looks to resolve MBS claims
The Federal Housing Finance Agency is seeking at least $6 billion from Bank of America (BAC) to settle civil claims, alleging the firm sold faulty mortgage bonds to both Fannie Mae and Freddie Mac. Per Bloomberg:
The person requested anonymity because negotiations with the Federal Housing Finance Agency, which are continuing and may not result in a deal, are private.
The FHFA sued Bank of America and 17 other firms over faulty mortgage bonds two years ago in an effort to recoup some of the losses taxpayers were forced to cover when the U.S. took over the failing mortgage finance companies in the wake of the credit crisis. Fannie Mae and Freddie Mac, which are regulated by FHFA, have received $187.5 billion in federal aid since then.