Most recently a mortgage settlement has been reached by regulators with nearly 10 US banks for 8.5 billion US dollars. The agreement appeared on Monday by the nation’s worthwhile lenders since the financial crisis. The US banks settled to cough up about 19 billion US dollars to resolve federal allegations of mortgage misdeeds. Bank of America Corp (NYSE:BAC) agreed to pay nearly 10.4 billion US dollars to Fannie Mae.

The settlement is a decisive step achieved by the bankers and they are optimistic that it will provide more certainty to for their balance sheets. Analysts are optimistic that this will also foreshadow an end to the era of billion dollar open ended regulatory investigation. The settlement was reached in two separate cases.

Fannie Mae is the giant loan buyer that he United States seized and then supported with cash piles out of taxpayers. Criminal investigations were carried out by prosecutors in recent years against some subprime mortgage key players including Angelo Mozilo in favor of pursuing civil fines.

The payout for homeowners has been applauded by housing advocates but they are of the view that the lenders have gotten off easy. That may result in economic damage to Main Street.

The settlement resulted in termination of Fannie demand prompting Bank of America to buy back huge sourced loans issued by Countrywide. Chief executive officer of BofA Mr. Brian Moynihan greeted the deal  by calling it a vital development in resolving lender’s remaining legacy mortgage disputes. BofA acquired Countrywide, the high risk Calabasas lender in 2008.

The Bank of America Corp (NYSE:BAC)’s settlement terminates its bitter argument with the nation’s largest mortgage buyer, Fannie Mae. Following the settlement, BofA will buy nearly 6.75 billion US dollars in residential mortgage loans from Fannie Mae and pay it nearly 3.6 billion US dollars in cash.

In a previous settlement, Moynihan made an agreement to pay billion dollars cash in Countrywide related claims. Bank of America still faces claims of billions of dollars from claimants.

Those include the federal regulator supervising Fannie Mae, mortgage finance giant Freddie Mac and US attorney’s office in New York.