Big Banks Buy Back Mortgage Debt!

Bank of America paid more than $2.5 million to buy back troubled mortgages and resolved claims from Fannie Mae and Freddie Mac as reported by New York Times writer Ben Perotess and Eric Dash.  See article

Country Wide Financial sold home loans to Fannie Mae and Freddie Mac at the height of the mortgage bubble and misrepresented the quality of those loans. Freddie Mac and Fannie Mae will receive about $9 million for these root purchase claims. That’s crucial because both Freddie Mac and Fannie Mae currently own or guarantee up to 2/3rds of all new mortgages in the United States. We want Freddie Mac and Fannie Mae to be on sound financial ground.

 

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