Fannie Mae, in a new Securities and Exchange Commission filing, said that in late January it cut off Bank of America from selling most types of loans to the GSE because of “delays” by the lender in making good on outstanding buyback requests.
In short, the GSE cancelled the bank's existing loan delivery contract.
In the filing, Fannie noted that in 4Q11 the bank accounted for 59% of buyback requests that were more than 120 days past due.
Overall, BofA accounted for 52% of its outstanding repurchase requests.
Last week the bank made headline news when it said it would stop selling purchase money loans to Fannie. Overall, BofA is struggling with $14 billion of repurchase requests from all secondary market investors, including Fannie.
Fannie disclosed to the public that although the bank has failed to honor repurchase obligations it has not caused the GSE “to change its estimate of the amounts it expects to collect from them ultimately,” adding that it is continuing to work with the bank “to resolve these issues.”
The disclosure was made in tandem with Fannie releasing its fourth quarter results. During the period Fannie lost $2.4 billion and $16.9 billion for the year. In 2010 Fannie lost $14 billion.
