Bank of America will pay about $10 billion to settle bad mortgages that suffered under the housing crash, reports the New York Times.
It will be paying mortgage giant Fannie Mae $3.6 billion and will spend $6.75 billion buying back mortgages at a discount rate from their original values.
The settlement will resolve all of the lender’s disputes with Fannie Mae, removing a major impediment to Bank of America’s rehabilitation. The bank had settled its fight with Freddie Mac, the other government-owned mortgage giant, in 2011.
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