The Real Deal Miami

BofA to record $2 billion charge for mortgages

January 03, 2011 02:21PM

Bank of America will record a $2 billion charge for its mortgage business in the fourth quarter of 2010 and set aside $3 billion for mortgage losses after reaching a Dec. 31 settlement with Fannie Mae and Freddie Mac, the company announced this morning. On Friday, BofA paid $2.6 billion to Fannie Mae and Freddie Mac to settle claims. Fannie and Freddie wanted BofA to repurchase thousands of loans sold to them by BofA’s Countrywide Financial, that may have contained false or improper documentation. BofA agreed to pay the $2.6 billion to settle those requests. “These actions resolve substantial legacy issues in the best interest of our shareholders,” said BofA CEO Brian Moynihan. “Our goals remain the same: put these issues behind us, focus on serving customers and clients, and continue to help distressed homeowners facing difficult times.” [SFBJ]