Martin & Jones, PLLC
Call today for a Free consultation.

Bank Of America Will Pay $10 Billion in Mortgage Claims

Bank of America will pay more than $10 billion to settle claims over troubled mortgages. The settlement was announced on January 7, 2013. Pursuant to the deal, Bank of America will pay $3.6 billion to Fannie Mae and will buy back $6.75 billion in loans that Bank of America and its Countrywide banking unit sold to Fannie Mae during the 2000-2008 time period. The settlement involves some 30,000 loans.

Bank of America purchased Countrywide Financial Corp. in July 2008, just before the financial crisis. Countrywide had a reputation for making risky loans and was regarded as a "bad actor" in the mortgage lending arena. Since the crisis, Countrywide has been the target of a number of regulatory actions over questionable lending practices.

In the wake of the financial crisis, Fannie Mae has sought to have lenders repurchase loans that did not meet Fannie Mae standards at the time of their original purchase. Bank of America reported that the loans involved in the settlement have an aggregate original principal balance of about $1.4 trillion and an outstanding principal balance of approximately $300 billion. Fannie Mae and Freddie Mac, which packaged loans it purchased into securities and sold them to investors, were essentially nationalized in 2008 when they nearly collapsed under the weight of the mortgage losses. Countrywide and other mortgage originators have been at the center of allegations of wrongdoing based upon fraudulent practices with respect to the making of the subject loans and misrepresentations to purchasers regarding the quality of those loans.

Read the News & Observer article.

No Comments

Leave a comment
Comment Information


Contact US Get Help Now

Send us an email or call us today at 800-662-1234 to speak with an attorney about your claim or to arrange a free consultation. It costs nothing to call and there is no obligation. In fact, we are not paid until your case is resolved. Se habla español. If you are unable to travel to one of our offices in Raleigh, Durham and Wilmington, we will meet with you at your location.

Bold labels are required.

Contact Information

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.


Privacy Policy

Raleigh Office
410 Glenwood Avenue
Suite 200
Raleigh, NC 27603

Toll Free: 800-662-1234
Phone: 919-821-0005
Raleigh Law Office Map

Wilmington Office
1213 Culbreth Drive
Suite 121
Wilmington, NC 28405

Toll Free: 800-662-1234
Phone: 910-256-4005
Wilmington Law Office Map

Durham Office
302 East Pettigrew Street
Suite 330
Durham, NC 27701

Toll Free: 800-662-1234
Phone: 919-544-3000
Durham Law Office Map