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BOA "buys" back $330M Freddie Loans from US now that they are profitable

edited July 2012 in Off-Topic
Looks like the US Government doesn't need to bail BOA out with these loans anymore now that they are so BOA wants them back. They will "buy" them back at par ($1.00) even though they are worth $1.10. Owners of these MBSs will take a 10% haircut when BOA calls these loans. Nice work if you can get it!

"Bank of America’s buyback of the loans, which are now packaged into securities guaranteed by Freddie Mac, will damage bond investors while the lender winds up owning mortgages that pay more interest than it could get from making new ones at today’s prevailing rates. "
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