Bank of America is to set aside $10bn to settle mortgage claims resulting from the housing meltdown. Under the deal announced Monday, the bank will pay $3.6bn to Fannie Mae and buy back $6.75bn in loans that BoA and its Countrywide banking unit sold to Fannie Mae from January 1 2000 through December 31 2008. That includes about 30,000 loans. Its shares edged up 14¢ to $12.25 in pre-market trading after the announcement. CEO Brian Moynihan said the agreements were "a significant step" in resolving the bank's remaining legacy mortgage issues while streamlining the company and reducing future expenses. Bank of America bought Countrywide in July 2008, just before the financial crisis. Countrywide was a giant in mortgage lending, but was also known for approving risky loans. Fannie Mae and Freddie Mac, which packaged loans into securities and sold them to investors, were effectively nationalized in 2008 when they nearly collapsed under the weight of their mortgage losses.