Bank of America agrees to sell part of its mortgage business at Fannie Mae

Best Growth Stock – Bank of America has signed an agreement to sell part of its mortgage business to the state-owned mortgage agency Fannie Mae, confirmed to Efe a spokesman for the bank.

The deal was closed on Friday and is still pending confirmation by the boards of both entities and cleared by the Securities and Exchange Commission (SEC, for its acronym in English) of the U.S., according to spokesman explained the above, who declined to specify how much amount the amount of the transaction.

Meanwhile, an agency spokesman also declined to provide details mortgage Efe on the deal.

The newspaper The Wall Street Journal said Monday citing people familiar with the negotiations that the sales transaction is valued at about $ 500 million and will be effective from September.

Finally approved the deal, Bank of America passed on to Fannie Mae mortgage loans of about 400,000 customers now have the bank of $ 70,000 million.

Bank of America continues to seek a solution to the problems of bad loans it inherited in 2008 following the collapse of Lehman Brothers, after its controversial purchase of Countrywide Financial mortgage company for 2,500 million dollars.

This agreement is called two days after AIG filed a lawsuit against Bank of America in the required 10,000 million dollars for damages caused the sale of bonds backed by subprime mortgages.

Shares of Bank of America, one of the thirty members of the Dow Jones industrials main reference on Wall Street, fell 8.03% today to a stunning lack of less than an hour to close the session at the NYSE York, where it has a depreciation of 46.25% so far this year.

Fannie Mae, along with Freddie Mac, one of the two mortgage lenders controlled by the U.S. government, which are intended to provide liquidity, stability and accessibility of housing markets and such credits.

These two firms, created by Congress during the Great Depression of last century to revitalize the housing market, supporting about 30 million mortgages in the U.S. with a value exceeding $ 5.5 billion.

The two entities buy mortgages from private entities that granted mortgage loans and then resell them in the form of bonds to investors, a process called “securitization.”

Both agencies were seized in 2008 after the financial collapse caused by subprime mortgages and in them the government of President Barack Obama has injected U.S. $ 145,000 million.