Citigroup Inc. (C), the third-largest
U.S. bank by assets, will pay Fannie Mae $968 million to
compensate the taxpayer-backed mortgage buyer for more than a
decade of claims tied to faulty home loans.
The agreement includes 3.7 million mortgages originated
from 2000 to 2012 and sold to Fannie Mae, New York-based
Citigroup said today in a statement. While payments are covered
by existing reserves, the lender set aside an additional $245
million in the second quarter. The biggest U.S. banks face pressure to resolve demands they buy back flawed mortgages sold to Fannie Mae and Freddie Mac, the U.S.-owned firms that took a $187.5 billion bailout after the financial crisis. While Citigroup and Bank of America Corp. (BAC) paid lump sums to settle repurchase claims, others such as Wells Fargo & Co. haven’t announced deals with the firms.
http://www.businessweek.com/news/2013-07-01/citigroup-to-pay-968-million-to-fannie-mae-on-faulty-mortgages
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