-
Bank of America Corp. has stopped selling some residential mortgages to Fannie Mae, saying that it let its contract expire in part due to ongoing disputes over mortgage repurchase claims.
February 23
Fannie Mae, in a new SEC filing, says that in late January it cut off Bank of America from selling most types of loans to the GSE because of "delays" by the lender in making good on outstanding buyback requests.
In short, the GSE cancelled the bank's existing loan delivery contract.
In the filing, Fannie notes that in 4Q the bank accounted for 59% of buyback requests that were more than 120 days past due.
Overall, B of A accounts for 52% of its outstanding repurchase requests.
Last week the
Fannie disclosed to the public that although the bank has failed to honor repurchase obligations it has not caused the GSE "to change its estimate of the amounts it expects to collect from them ultimately," adding that it is continuing to work with the bank "to resolve these issues."
The disclosure was made in tandem with Fannie releasing its fourth quarter results. During the period Fannie lost $2.4 billion and $16.9 billion for the year. In 2010 Fannie lost $14 billion.
