Freddie Mac Reaches Repurchase Settlement with Citigroup

This article brings to mind the fact that with all the damage that was done to millions of US citizens by the banking/mortgage industry collapse not 1 person of any consequences was even charged. All they ever did was say “Sorry”. Please read the article below.

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Citigroup and Freddie Mac have reached an agreement to settle potential future repurchase claims on millions of loans sold to the GSE in the last decade.

According to a release from Citi, the bank will pay Freddie Mac $395 million, all of which is covered by its existing mortgage repurchase reserves as of the end of Q2.

The agreement covers claims for breaches of representations and warranties on 3.7 million loans sold between 2000 and 2012. It does not release Citi from liability with respect to the bank’s servicing or other obligations on the included loans. Also not included are less than 1,000 loans sold with resource or some guarantee of performance and those currently in the repurchase process.

Citi says it is “adequately reserved” for those loans not covered by the agreement.

Jane Fraser, CEO of CitiMortgage, said the agreement “marks another important milestone in successfully resolving Citi’s remaining legacy mortgage issues.” She added that the bank will remain focused on “continuing to provide high quality mortgage products and service to [its] customers.”

To read the complete article please use the link below.

Repurchase Settlement with Citigroup

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Tags: Ability to Pay, Citigroup, Freddie Mac, Mortgage Debt, Secondary Market

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