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Obama Administration Applauds Bank of America Settlement Obama Administration Applauds Bank of America Settlement Author: Brian Honea August 21, 2014 1 Obama administration officials praised Thursday's $16.65 billion settlement between Bank of America and the U.S. Department of Justice , $7 billion of which will go to provide consumer relief to assist those distressed by the collapse of the housing market in 2008.   The U.S. Department of Housing and Urban Development ( HUD ) announced on Thursday that Bank of America will pay $800 million to FHA-related claims and $200 million to the Government National Mortgage Association ( Ginnie Mae ). The remaining money (nearly $16 billion) goes to settle claims related to sales of toxic residential mortgage-backed securities leading up to the housing market collapse six years ago, HUD said. The amount of the settlement was the largest in U.S. history between a single entity and the government. "Under the terms of this settle