Bank of America has agreed to pay more than $9.3 billion to settle a suit brought by the Federal Housing Finance Agency alleging that Bank of America, Countrywide, and Merrill Lynch (now both owned by BofA) sold Fannie Mae and Freddie Mac securities backed by troubled mortgages. Bank of America agreed to buy back some of the mortgage-backed securities that it sold to Fannie Mae and Freddie Mac. Approximately $3.5 billion of the settlement is allocated for that purpose.

Read the NYT Article, “Bank of America to Pay $6.3 Billion to Settle Mortgage Securities Suit”
Read the FHFA Press Release, “FHFA Announces $9.3 Billion Settlement With Bank of America Corporation”
Read the FHFA Settlement Agreement