Bank of America Settles with Freddie, Fannie by Agreeing to Pay More Than $2.6 billion

Bank of America said yesterday it has resolved issues with Freddie Mac and Fannie Mae by agreeing to pay more than $2.6 billion to settle disputes that it sold loans based on faulty information.

The lender said fourth-quarter results would include a $2 billion impairment charge and a $3 billion provision.

Mortgage buyers, including Freddie Mac in McLean, Va. and Fannie Mae in Washington, are trying to force lenders to buy back loans that may have been made with incorrect data on income and home values.

Before the settlement was announced yesterday, Bank of America faced $12.9 billion in unresolved putback demands on soured mortgages, with about half related to government-sponsored entities, according to an Oct. 19 presentation to investors.

The company said in October it had reserved $4.4 billion for costs related to the problem.

“Bank of America believes that it has addressed its remaining exposure to repurchase obligations for residential mortgage loans sold directly to’’ the government-sponsored entities, the company located in Charlotte, N.C., said yesterday.

The agreement provides for a $1.28 billion cash payment to Freddie Mac to resolve claims arising from 787,000 loans sold through 2008 by legacy Countrywide Financial Corp., Bank of America said in the statement. Bank of America also agreed to pay $1.34 billion in cash to Fannie Mae, after applying certain credits to an agreed-upon settlement of $1.52 billion.

“These actions resolve substantial legacy issues in the best interest of our shareholders,’’ Brian Moynihan, chief executive officer, said in the statement.

The agreement with Freddie Mac involves loans with total unpaid principal of $127 billion, and the Fannie Mae agreement includes unpaid principal of $2.7 billion.

“This significant agreement with Bank of America is a fair and responsible resolution of these outstanding claims,’’ Michael Williams, Fannie Mae chief executive officer, said in a statement.