American Banks Reach Mortgage Settlements
January 8 , 2013
Bank of America and other major banks agreed to payout over $19 billion by way of settlements to resolve regulatory misconduct allegations by the federal authorities. Bank of America agreed on a $10.3 billion settlement with Fannie Mae to dissolve claims of having backed dubious home loans. These loans cost the mortgage-finance giant billions of dollars in losses. Bank of America, JPMorgan Chase, Wells Fargo, and seven other banks also agreed to pay $8.5 billion and settle foreclosure abuse allegations. The two settlements are among the biggest in the history of civil settlements in the country since the financial crisis.