Digital Access

Digital Access
Access newtondailynews.com from all your digital devices and receive breaking news and updates from around the area.

Home Delivery

Home Delivery
News, sports, local and regional entertainment and more!

Text Alerts

Text Alerts
Choose your news! Select the text alerts you want to receive: breaking news, prep sports scores, school closings, weather, and more.

Email Newsletters

Email Newsletters
We'll deliver news & updates to your inbox. Sign up for free e-newsletters today.
Nation & World

Bank of America reaches settlement with Fannie Mae

CHARLOTTE, N.C. (AP) — Bank of America has reached a settlement with Fannie Mae on residential mortgage loans sold by the bank and its Countrywide unit to the agency ahead of the nation’s 2008 financial crisis.

The settlement includes a $3.6 billion payment to Fannie Mae. Bank of America will also buy back some of the loans sold to Fannie Mae for $6.75 billion.

Its stock gained more than 2 percent in premarket trading.

Bank of America bought Countrywide Financial Corp. in July 2008, just before the financial crisis. Countrywide was a giant in mortgage lending, but was also known for approving risky loans.

Bank of America Corp. also said Monday that it is also selling mortgage servicing rights on about 2 million loans.

The bank will take some charges, but expects “modestly positive” fourth-quarter earnings.

Loading more