Fiji Times Logo

Fiji Time: 3:51 AM on Saturday 20 September

/ Front page / Business

Bank settles loan claims

Bbc.Co.Uk
Wednesday, January 09, 2013

BANK of America has agreed to pay US government mortgage agency Fannie Mae $US3.6b ($F6.4b) to settle claims relating to residential home loans. In addition, it has agreed to buy back 30,000 mortgages for $US6.75b ($F12.01b) and pay a further $US1.3b ($F2.31b) in compensation. Fannie Mae argued the bank sold it toxic debts and should be responsible for the losses it suffered as a result.

Separately, 10 big mortgage providers agreed to pay $US8.5b ($F15.1b) in compensation for mistakes in repossessing homes. The banks include Bank of America, Citigroup, JP Morgan and Wells Fargo.

They will pay $US3.3b ($F5.8b) directly to homeowners, some of whom should not have lost their homes, regulators said.

Individual owners will receive anything from a few hundred dollars to $US125,000 ($F222,000).

Fannie Mae supports the US mortgage market, which collapsed in 2008 after the housing bubble burst.

In the run-up to the financial crisis of 2007-08, home loans grouped together and sold on as investments became increasingly popular.


Fiji Times Front Page Thumbnail

Kaila Front Page ThumbnailFiji Times & Kaila Frontpage PDF Downloads

Use the free Acrobat Reader to view.

Today's Most Read Stories

  1. General Election results: Round 14
  2. General Election results: Round 13
  3. General Election results: Round 12
  4. Ruggers ready for NZ
  5. Fans stabbed
  6. Ovalau braces for top rugby
  7. Boateng strikes
  8. Jittery start for Chelsea

Top Stories this Week

  1. FijiFirst claims 60 per cent Thursday (18 Sep)
  2. Searching for answers Monday (15 Sep)
  3. Girl, 12, murdered Monday (15 Sep)
  4. Leader of the pack Thursday (18 Sep)
  5. Parties reject result Friday (19 Sep)
  6. Shocked and disgusted Monday (15 Sep)
  7. No stop Friday (19 Sep)
  8. FijiFirst leads Thursday (18 Sep)
  9. No $20m ransom Tuesday (16 Sep)
  10. Elections supervisor to announce final results Friday (19 Sep)