BofA to pay Fannie Mae more than $10B

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Banks were faced with an unprecedented number of lawsuits in 2012, and 2013 may prove to be another litigation-heavy year for banks. According to the New York Times, Bank of America agreed today to pay more than $10 billion to Fannie Mae to settle a dispute over mortgages that tanked during the housing crash. Bank of America will now pay the federally-backed housing giant $3.6 billion and will spend an additional $6.75 billion to buy back mortgages from Fannie Mae at a discount to their original value. Most of the loans at issue were originated by Bank of America’s Countrywide Financial subsidiary. [more]