BofA Halts Routing New Mortgages to Fannie Mae - Bloomberg
I guess repurchasing all of the mortgage-backed loans whose insurance was withdrawn was the bridge too far...especially with Fannie Mae claiming that they were "always" contractually obligated to do so a few months back. Now they're having a standoff as to who will keep all of that garbage on their balance sheet. BofA is in far too delicate a shape to do this...but I'm surprised they couldn't finagle some kind of deal.Bank of America Corp., the second- largest U.S. lender by assets, will stop selling new home loans to Fannie Mae after a dispute over faulty mortgages.
Starting this month, the Charlotte, North Carolina-based company will deliver only loan modifications and refinancings to U.S. government-controlled Fannie Mae, the bank said today in its annual filing with securities regulators.
Or maybe they did?