CHARLOTTE, NC - 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.
Copyright 2013 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
Click on the region names in the map below to see news from that region.
RIGHT NOW: Top Stories
At least nine legislators received threatening emails over Gov. Jan Brewer's push to expand Medicaid in the state.
The foreman in the notorious Jodi Arias trial is speaking out, explaining the group's confusion as Judge Sherry Stephens declared a mistrial during the penalty phase on Thursday.
82-year-old Dorothy Penrod died Thursday night, shortly after arriving at University of Arizona Medical Center.
Now more than ever, scammers want your personal information.
A federal judge has ruled that the office of America's self-proclaimed toughest sheriff systematically racially profiled Latinos in its trademark immigration patrols.
Firefighter Brad Harper was laid to rest Friday in Phoenix following a procession beginning in Peoria.