Bulletin: Bank of America Corp. Ratings Unaffected By Settlement With Fannie And Freddie Jan 11
Standard & Poors, January 2011
Abstract
NEW YORK (Standard & Poor's) Jan. 3, 2011--Standard & Poor's Ratings Services said today that its ratings on Bank of America Corp. (BofA; A/Negative/A-1) are unchanged following BofA's announced settlement with Freddie Mac and Fannie Mae addressing its remaining exposure to repurchase obligations for residential mortgage loans sold directly to the government-sponsored entities (GSEs). The agreement reduces the uncertainty regarding BofA's exposure to GSE mortgage representation and warranty liability. However, the recent court decision allowing MBIA, a monoline insurer, to use statistical sampling in making its case for representation and warranty claims on securitization deals it insured for BofA tempers the positive aspects of the settlement. The GSE exposure of the representation and warranty issue is, in our view, significantly...
Companies mentioned in this report are: Bank of America Corp.
Action: Bulletin
Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.
Research type: News
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Bank of America Corp.
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