Citigroup Reports Deal to Resolve Possible Future Mortgage Buyback Claims with Freddie, to Pay $395M

Citigroup

today announced an agreement with Freddie Mac to resolve potential future repurchase claims for breaches of representations and warranties on 3.7 million loans sold to Freddie Mac between 2000 and 2012 (“Included Loans”). Citi agreed to pay Freddie Mac $395 million under the agreement, all of which was covered by Citi's existing mortgage repurchase reserves as of June 30, 2013. Jane Fraser, CEO of CitiMortgage, said, “Today's agreement with Freddie Mac marks another important milestone in successfully resolving Citi's remaining legacy mortgage issues. Looking forward, Citi remains focused on continuing to provide high quality mortgage products and service to our customers.” Citi's agreement with Freddie Mac covers