Bank of America pays Freddie $404 mn over subprime loans

Bank of America said on Monday it will pay mortgage financier Freddie Mac $404 million to resolve claims over subprime loans the bank sold before the housing crisis. Bank of America said the agreement would resolve all of Freddie's remaining claims over more than 700,000 mortgage loans the bank's Countrywide unit sold Freddie between 2000 and 2009. Countrywide, which Bank of America took over in 2008, has been accused of generating and selling on to companies like Freddie and Fannie Mae millions of weak and poorly documented home loans as investment-quality assets.