Citigroup Settles With Fannie Mae for $968 Million

Citigroup (NYSE: C  ) has agreed to pay $968 million to Fannie Mae to settle any potentially bad mortgages the bank sold to the government-sponsored mortgage company, Citigroup announced today.

The settlement covers 3.7 million home loans made between 2000 and 2012. Not only will it apply to existing troubled mortgages but also to any future claims on those loans. Most of the settlement money is available under Citigroup's existing  mortgage repurchase reserves. The bank said it would rebuild its residential mortgage repurchase reserve to $245 million in the second quarter.

"We have a strong and productive relationship with Fannie Mae," said CitiMortgage CEO Jane Fraser in the company's statement. "This agreement resolves substantially all potential future repurchase claims from them for loan originations from 2000 to 2012."

In a statement, Fannie Mae General Counsel Bradley Lerman said, "Today's agreement resolves legacy repurchase issues, compensates taxpayers for losses, and allows Fannie Mae and Citi to move forward and strengthen our business relationship. We continue to focus on making strong progress in resolving repurchase requests with other lenders ..."

Last January, Bank of America agreed to pay Fannie Mae $3.6 billion in cash and repurchase $6.75 billion worth of residential mortgages it sold to Fannie Mae from 2000 to 2008.


Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2518661, ~/Articles/ArticleHandler.aspx, 9/25/2016 11:56:42 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 2 days ago Sponsored by:
DOW 18,261.45 -131.01 -0.71%
S&P 500 2,164.69 -12.49 -0.57%
NASD 5,305.75 -33.78 -0.63%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/23/2016 4:00 PM
C $47.15 Up +0.04 +0.08%
Citigroup CAPS Rating: ***