Today U.S. Bancorp (NYSE:USB) announced it had come to an agreement with Freddie Mac (NASDAQOTH:FMCC) to settle all mortgage-related claims with the government-sponsored entity. The agreed-upon amount of the settlement is $53 million.
The settlement stemmed from claims related to mortgage repurchase obligations and representation and warranties agreements for mortgages sold to Freddie Mac between 2000 and 2008. U.S. Bancorp noted that as of the end of the third quarter it had fully reserved for the settlement, and it would be making a one-time cash payment to Freddie Mac.
U.S. Bancorp joins a long line of other banks that have settled with Freddie Mac in recent weeks. This includes Freddie Mac settling with Bank of America for $404 million, and PNC settling for $89 million on Dec. 6.
"We continue to make very good progress in recovering funds that are due to the American taxpayer, as well as resolving Freddie Mac's legacy repurchase issues," said Freddie Mac CEO Donald Layton when the settlement with Bank of America was announced.
Fool contributor Patrick Morris owns shares of Bank of America and US Bancorp. The Motley Fool recommends Bank of America. The Motley Fool owns shares of Bank of America and PNC Financial Services. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.