The agreement covers current and future repurchase obligations related to loans with an outstanding unpaid principal balance of $297 billion as of November 30, 2012 that were originated between January 1, 2000 and December 31, 2008. As part of the agreement, Bank of America will make a cash payment to Fannie Mae of $3.55 billion. In addition, Bank of America will repurchase approximately 30,000 loans, which have the potential to cause significant future losses to Fannie Mae, paying par plus accrued interest, for an additional approximately $6.75 billion, subject to certain adjustments. As a result of this resolution, the amount of Fannie Mae’s outstanding repurchase requests will decrease substantially in the first quarter of 2013.
You can read the full article on FannieMae’s website.