BofA, Freddie Mac in Talks to Settle Mortgage Dispute, WSJ Reports

Wednesday, 13 Nov 2013 07:45 AM

 

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Bank of America is in talks with Freddie Mac to resolve disputes involving more than $1.4 billion in defective mortgages that Freddie wants the bank to take back, the Wall Street Journal reported, citing people familiar with the matter.

The settlement, if reached, would be the second such agreement between Bank of America and Freddie since 2011, according to the Journal.

The deal would largely shield the bank from any future repurchase demands from Freddie stemming from loans sold before 2012, the paper reported.

The Journal said that the terms of the potential settlement could not be determined. Bank of America is hoping to settle before the end of the year, the WSJ reported.

Last week, the U.S. government urged that Bank of America pay $863.6 million in damages after a federal jury found it liable for fraud over defective mortgages sold by its Countrywide unit.

Freddie Mac and BofA could not immediately be reached for comment outside of regular U.S. business hours.

© 2014 Thomson/Reuters. All rights reserved.

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