Jan 07 - Bank of America CEO Brian Moynihan is trying to put the mortgage mess behind the bank, agreeing to at least $11.6 billion in settlements on Monday. Conway G. Gittens reports.
Bank of America CEO Brian Moynihan is our Power Player. He's aggressively trying to put the mortgage mess behind the bank, much of which was tied to Countrywide Financial. BofA bought the troubled lender during the financial crisis, before Moynihan took over. In the latest round of settlements, BofA will pay $3.6 billion to mortgage guarantor Fannie Mae and buy back $6.75 billion in bad loans sold to the government-owned company. In a separate settlement over foreclosure delays, BofA will pay $1.3 billion to Fannie Mae, bringing the total to roughly $11.6 billion, to be paid mostly out of reserves. And in other moves to put the past behind, BofA is part of 10 mortgage servicers to pony up a total of $8.5 billion to settle allegations the banks used questionable practices to push through foreclosures. And finally, Moynihan is selling the bank's rights to collect mortgage payments on about $300 billion in loans. The price tag: $1.8 billion.