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Mortgage Repurchase Progress Slows at Bank of America Bank of America made little progress on outstanding mortgage repurchase claims during the first quarter. More than $16 billion in claims are still outstanding, and more than half come from Fannie Mae and Freddie Mac. Between the first quarter of 2011 and the end of last year, total outstanding claims grew from $11.8 billion to $12.6 billion, spiking up 26% in the first three months of 2012. Investors claim BofA violated origination standards before selling them on the secondary market, and are attempting to force the bank to buy them back. The bank formed its legacy asset division last year to settle the requests. Fannie, the largest mortgage financier in the U.S., and BofA severed business ties in February when the two disagreed over outstanding claims. "We continue to have disagreements," said BofA Chief Financial Officer Bruce Thompson in a conference call with investors Thursday. The result led to fewer claim approvals. According to the earnings statement, BofA approved $480 million in buyback requests during the first quarter, down from $1.1 billion in the previous three months and a high of $2.2 billion in the third quarter.
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