Residential Cap

Ally Financial Inc. and Bank of America Settle with Fannie Mae and Freddie Mac

On December 27, 2010, Ally Financial Inc. announced that its residential mortgage unit, Residential Cap, LLC, paid $462 million to settle repurchase demands from Fannie Mae regarding mortgage-backed securities. On January 3, 2011, Bank of America also announced that it recently reached a settlement agreement with Fannie Mae and Freddie Mac., pursuant to which it paid $1.28 billion to Freddie Mac and $1.52 billion to Fannie Mae to resolve “outstanding and potential mortgage repurchase and make-whole claims” arising from any alleged breaches of representations and warranties made by Countrywide in loan sales. BoA Press Release. Ally Press Release.