The acting commissioner of the Federal Housing Administration (FHA) this week blasted news that claim Bank of America Corp. was essentially bailing out the agency's mortgage insurance fund.

BofA's $1 billion settlement with the agency was "not a gift," but rather compensation for past losses, said Carol Galante, the FHA's acting assistant commissioner, at a conference for mortgage servicers hosted by the Mortgage Bankers Association in Orlando, Fla.

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