SecurityNational Mortgage Company, a wholly owned subsidiary of Security National Financial Corporation (SNFCA), has entered into a settlement agreement with Bank of America (BAC) and its predecessor, Countrywide Home Loans, over mortgage loans it previously sold.
According to the agreement, Bank of America and Countrywide had alleged certain breaches by SecurityNational Mortgage of representations and warranties regarding sales of mortgage loans under the parties' loan purchase agreements.
As a result, SecurityNational Mortgage was obligated to repurchase loans and to indemnify them from losses.
All loans sold by SecurityNational Mortgage to Bank of America and Countrywide and required a single settlement payment from SecurityNational Mortgage fall under the settlement.
The required payment has been made and Bank of America and Countrywide have given SecurityNational Mortgage a general release with respect to past, present and future claims and disputes arising under the loan purchase agreements.
As of October 2010, SecurityNational Mortgage had ceased selling loans to Bank of America.
“We are very pleased with this settlement and that the company has been able to obtain a resolution of these lingering issues," said J. Lynn Beckstead, president of SecurityNational Mortgage Company.