While Bank of America's settlement with Freddie Mac and Fannie Mae provides greater clarity for its ultimate exposure regarding representations and warranty losses, there is still uncertainty for the bank holding company regarding losses in the areas the deal does not cover, a report from Fitch Ratings said.

The settlement makes it likely that total current losses related to GSE rep and warranty claims for the four largest banks (the other three being JPMorgan Chase, Citigroup and Wells Fargo) will be closer to what Fitch termed its "mild loss scenario" of $17 billion made, which was made back in August.

However, BofA still is subject to future repurchase requests from Fannie Mae as well as from investors in private label securities and whole loans plus insurers.

"Potential losses related to these sources remain uncertain and ultimate resolution of non-GSE claims could be protracted," Fitch said, adding the agreement is a "large, favorable step forward" for the bank regarding the uncertainty of mortgage repurchase risk.

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