Tag Archives: Bank of America

DOJ finally confirms record-setting $16.65B settlement with BofA

by Chris Morran, Consumerist

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The settlement coming out of BofA’s involvement in the housing market’s collapse exceeds last year’s deal with JPMorgan Chase as the largest in U.S. history. Consumers will see $7 billion in relief, including principal reduction loan modifications; new loans to credit-worthy borrowers struggling to get a loan; assistance to communities recovering from the financial crisis; and financing for affordable rental housing. The settlement also required BofA to concede that it originated risky mortgage loans and made misrepresentations about the quality of those loans. Read More ›

BofA ordered to pay $1.3 billion over Countrywide lending program

by E. Scott Reckard, Los Angeles Times

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A New York judge ordered Bank of America to pay nearly $1.3 billion in penalties in a civil fraud case involving a mortgage program that Countrywide had nicknamed “the hustle,” which fast-tracked the processing of mortgage applications. After a monthlong trial, a jury decided last fall that BofA and Countrywide were liable for selling thousands of bad loans to Fannie Mae and Freddie Mac. The lending program fast-tracked mortgage applications from August 2007 through May 2008. Shortly thereafter, Bank of America bought Countrywide, the nation’s largest home lender at the time. Read More ›

With Citigroup paying up, will feds’ attention now turn to BofA?

by E. Scott Reckard, Jim Puzzanghera, The Los Angeles Times

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With Citigroup Inc. agreeing to pay $7 billion for issuing toxic mortgage securities, the Justice Department now turns to settling its case against what analysts call the biggest mortgage miscreant of all: Bank of America Corp. In the Citi deal, California will be among several states that will share in the settlement. Citi will pay California $102.7 million to offset losses at its public pension funds, primarily the California Public Employees’ Retirement System. California also is guaranteed at least $90 million in consumer relief, the most of any state. Read More ›