More than $0.3 billion in mortgages are being repurchased from the Federal Home Loan Mortgage Corp.
The secondary home-loan lender disclosed the upcoming transaction Tuesday.
According to Freddie Mac, the repurchases are “the result of the resolution of certain contractual matters.”
The action involved $330 million in mortgages backing the McLean, Va.-based company’s participation certificates.
The repurchases are expected to be completed this month.
“Accordingly, Freddie Mac expects that the repurchases of the mortgage loans backing the related PCs will be reflected in the PC factor reports that Freddie Mac expects to publish on or about June 7, 2012,” a statement said.
Published reports indicate that Bank of America Corp. is making the buybacks.
BofA, which had $14.3 billion in unresolved repurchase claims as of Dec. 31, 2011, said in February that it would no longer deliver purchase-money mortgages to Fannie Mae and would withhold refinance transactions except for loans processed under the Home Affordable Refinance Program.
“The non-renewal of these contractual delivery commitments and variances was influenced, in part, by our ongoing differences with FNMA in other contexts, including repurchase claims,” the Charlotte, N.C.-based financial institution said at the time.
BofA forked over $1.28 billion to Freddie in December 2010 to settle repurchase demands on 787,000 mortgages for $127 billion that were acquired from Countrywide Home Loans through 2008.
In its fourth-quarter 2010 earnings report, BofA disclosed that after a $3 billion charge tied to repurchases from both Fannie and Freddie, “Bank of America believes that it has addressed its remaining exposure to repurchase obligations for residential mortgage loans sold directly to the GSEs.”
