BofA May Owe Fannie, Freddie $230 Million for Foreclosure Delay

Bank of America Corp. said it will probably have to pay government-sponsored enterprises Fannie Mae and Freddie Mac an additional $230 million because of delays foreclosing on mortgages bought by the firms.

Bank of America’s agreements with Fannie Mae and Freddie Mac “provide for timelines to resolve delinquent loans through workout efforts or liquidation, if necessary,” the Charlotte, North Carolina-based lender said today in its annual report to the Securities and Exchange Commission. “In the fourth quarter of 2010, we recorded an expense of $230 million for compensatory fees that we expect to be assessed by the GSEs as a result of foreclosure delays.”

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