Freddie Mac and Bank of America are in settlement talks to resolve disputes over more than $1.4 billion in faulty mortgages Freddie has said that Bank of America should have to take back, the Wall Street Journal reported today. The deal would be the second such agreement between Bank of America and Freddie since 2011. It would largely shield the bank from any future repurchase demands from Freddie stemming from loans sold before 2012. The second-largest U.S. bank by assets is hoping to settle before the end of the year. Since 2011, Bank of America, based in Charlotte, N.C., has reached two such settlements with Freddie's larger sibling, Fannie Mae, including one worth $11.6 billion earlier this year. Fannie and Freddie can force banks to buy back loans that don't adhere to agreed-upon standards, and since 2009, both companies have demanded that lenders repurchase tens of billions in soured loans made as the housing boom turned to bust.
