Feds want details on Bank of America settlement

AP News
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Posted: Aug 30, 2011 6:41 PM
Feds want details on Bank of America settlement

Fannie Mae and Freddie Mac are asking for more information about a proposed $8.5 billion settlement between Bank of America and 22 investors.

The federal agency that is administering the two government-controlled mortgage buyers filed papers on Tuesday saying it wants to preserve its rights for a possible future objection to the settlement. The Federal Housing Finance Agency says it does not expect to object, though.

The deal announced in June would have Bank of America Corp. and its Countrywide unit pay $8.5 billion to settle claims that they sold poor mortgage-backed securities. The 22 investors who agreed to the settlement include the Federal Reserve Bank of New York, Pimco Investment Management, and Blackrock Financial Management.