Bank of America and Fannie Mae reached a $10.3 billion agreement Monday to resolve repurchase claims on loans originated from 2000 through 2008. The agreement also requires BofA to pay the GSE $1.3 billion in compensatory fee obligations.

BofA simultaneously announced its intent to sell the servicing rights of 2 million mortgage loans to specialty servicers. These loans are owned by Fannie Mae, Freddie Mac, Ginnie Mae, and private label securitizations.

BofA will repurchase 30,000 loans for $6.75 billion and submit a $3.6 billion cash payment to Fannie Mae.

“Together, these agreements are a significant step in resolving our remaining legacy mortgage issues, further streamlining and simplifying the company and reducing expenses over time,” said Brian Moynihan, CEO of BofA, with Monday’s announcement.

The agreement settles $11.2 billion in unresolved claims from Fannie Mae as of the end of September, “subject to certain claims Bank of America does not expect to be material,” according to a press release from BofA.

Fannie Mae claimed Monday’s agreement as a victory for taxpayers, with Bradley Lerman, EVP and general counsel stating, “A favorable resolution of this long-standing dispute between Fannie Mae and Bank of America is in the best interest of taxpayers.”

“Fannie Mae has diligently pursued repurchases on loans that did not meet our standards at the time of origination, and we are pleased to have reached an appropriate agreement to collect on these repurchase requests,” he continued.

Edward DeMarco, acting director of the Federal Housing Finance Agency, Fannie Mae’s conservator, called Monday’s arrangement “a major step forward in resolving issues from the past and providing greater certainty in the marketplace.”

Of the 2 million sales of mortgage servicing rights, about 232,000 are 60 or more days delinquent. Both BofA and Fannie Mae suggest specialty servicers will be able to mitigate losses on some of these past-due loans.

“We are resolving legacy mortgage issues while balancing the needs of our customers, mortgage investors, our shareholders and communities,” said Ron Sturzenegger, BofA’s legacy asset servicing executive. “The sale of mortgage servicing rights to highly rated specialty servicing companies is an important step in that process.”

BofA will cover its financial obligations to Fannie Mae through existing reserves and with the help of additional representations and warranties provisions recorded in the fourth quarter of 2012.

Overall, BofA expects today’s agreement to reduce its 2012 fourth-quarter, pretax income by $2.7 billion. However, BofA says the agreement addresses “substantially all of its remaining exposure to repurchase obligations for residential mortgage loans sold directly to Fannie Mae.