SOURCE: Freddie Mac
March 26, 2014 16:38 ET
MCLEAN, VA--(Marketwired - Mar 26, 2014) - Freddie Mac (OTCQB: FMCC) today announced that, in conjunction with Fannie Mae and FHFA, it has entered into an agreement with Bank of America to settle claims related to investments by Freddie Mac and Fannie Mae in certain residential non-agency mortgage-related securities originated, issued or underwritten by Bank of America and certain affiliates.
Separately, Freddie Mac also entered into a settlement with Bank of America concerning Freddie Mac claims related to representations and warranties on single-family loans underlying five Freddie Mac Structured Pass-Through Certificates (known as "T-Deals").
Under the agreements, Freddie Mac will receive a total of approximately $5.1 billion from Bank of America.
"We are pleased that we have resolved this matter with one of our largest seller/servicer customers and counterparties," said Freddie Mac CEO Donald H. Layton. "This settlement is an equitable outcome that allows both Freddie Mac and Bank of America to put these issues behind us and focus on the future."
Details of the settlement agreements are as follows:
Freddie Mac was established by Congress in 1970 to provide liquidity, stability and affordability to the nation's residential mortgage markets. Freddie Mac supports communities across the nation by providing mortgage capital to lenders. Today Freddie Mac is making home possible for one in four home borrowers and is one of the largest sources of financing for multifamily housing. Additional information is available at FreddieMac.com, Twitter @FreddieMac and Freddie Mac's blog FreddieMac.com/blog.
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