The progress that the Federal Home Finance Agency has made in litigation against Bank of America and other financial institutions could prompt Fannie Mae and Freddie Mac to step up their sales of mortgage bonds, according to research published today by BofA's investment banking unit.

On Monday, BofA became the latest bank to settle with the FHFA, agreeing to a $9.3 billion settlement that will release the bank from all future securities law and fraud claims related to its sale of residential mortgage bonds to the GSEs. It is the seventh such settlement.

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