Bank of America to spend $9.3B in FHFA settlement

Mar 27, 2014, 5:58 AM EDT
Bank of America won't test alerts. Last week, Bank of America scrapped a proposed $5 monthly fee on debit card purchases.
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Bank of America will spend $9.33 billion to resolve a dispute over mortgage securities with the Federal Housing Finance Agency, the regulator that oversees Fannie Mae and Freddie Mac. The agency sued 18 financial institutions in 2011 over their sales of mortgage securities to Fannie and Freddie. It alleges many banks falsely represented the mortgage loans behind the securities. These soured after the housing bubble burst and lost billions in value.
Background:
BofA to spend $9.3 billion in FHFA settlement [USA Today]
Bank of America to pay $9.3 billion to settle mortgage bond claims [Reuters]

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