Bloomberg reports that Bank of America will make a $3.6bn cash payment, spend $6.75bn to buy back residential loans sold to Fannie Mae, and pay $1.3bn in fees for taking too long to foreclose on overdue borrowers, according to separate statements.
Even after these costs and an additional $2.5bn for expenses that include litigation and a separate regulatory settlement, the Charlotte, North Carolina-based lender said the fourth quarter was 'modestly' profitable.
It’s the latest effort by Chief Executive Officer Brian T. Moynihan to cap the damage caused by his predecessor’s takeover of Countrywide Financial Corp. and its defective subprime home loans. Before Monday, the bank committed more than $40bn since 2007 to cover the costs of refunds and litigation tied to faulty mortgages and foreclosures.
Hit the link below to access the complete Bloomberg article: