Skip to content
Subscriber Only

BofA Says Fannie Deal a ‘Necessary Step’ in Housing Recovery

Bank of America Corp. said its $2.8 billion in accords with Fannie Mae and Freddie Mac, the government-owned firms pushing lenders to repurchase soured mortgages, was a “necessary step” in the housing recovery.

The biggest U.S. bank by assets announced Jan. 3 that it had “largely addressed” liabilities from the two mortgage-financing firms by paying Fannie Mae $1.5 billion and giving Freddie Mac $1.3 billion. The agreements may have shortchanged the U.S. government, which took over the two firms in a 2008 rescue, Representative Maxine Waters said late yesterday.