If it weren't for a recent legal settlement with Bank of America, the Federal Home Administration's (FHA) mortgage insurance fund would be in the red.  

The FHA on Monday said it is patching a $688 million budget shortfall in its mortgage insurance fund with nearly $750 million in funds coming from last week's robo-signing settlement with the five major servicers, in particular, BofA, according to the U.S. Department of Housing and Urban Development (HUD) officials.

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