Bank of America reaches agreement to resolve claims

Bank of America reaches agreement to resolve claimsBank of America Corp has reached agreements to resolve major issues involving the bank following the crippling economic crisis.

The bank has agreed to its settle lending complaints, sell rights to service mortgages and also get even with the market regulator in the country. The bank has agreed to a $11.7 billion agreement for resolving its outstanding disputes with Fannie Mae. Senior federal prosecutor in the US had filed a lawsuit against the Bank of America for more than $1 billion for being involved in mortgage fraud against Fannie Mae and Freddie Mac during the time of the financial crisis.

A court in the US had said that Countrywide Financial offered loans to people from 2007 to 2009 without making sure that they would be able to return the loans to the lender, which was later acquired by the Bank of America. It was also observed that the accusations laid against the bank are upfront.

Bank of America will also sell its right to service about 2 million mortgages involving about $300 billion. It will also be among the 10 ten banks that will pay $8.5 billion to settle claims of abuse from 2001 dealings.