Bank of America to pay Freddie Mac $404 million in mortgage settlementCredit: Reuters/Fred Prouser The logo of the Bank of America is pictured atop the Bank of America building in downtown Los Angeles November 17, 2011. The settlement covers about 716,000 loans and compensates Freddie Mac for past losses and potential future losses related to denials, rescissions and cancellations of mortgage insurance, Freddie Mac said in a statement.