Citi pays Fannie US$968 million for possible mortgage repurchase claims

By IVCPOST Staff Reporter

Jul 01, 2013 10:24 AM EDT

For US$968 million, Citigroup Inc would pay Fannie Mae to settle possible mortgage repurchase claims. Between 2000 and 2012, Fannie Mae received infringed representations of loans from Citigroup.

The deal covered US$3.7 million loans on claims for breaches of warranties. However, the agreement did not release Citigroup's legal responsibilities. The said company at fault incurred liabilities for servicing and current contractual duties for the loans.

The bank looked forward to US$245 million worth of residential mortgage reserve. Its anticipated budget was consistent with the reserves from latest quarters.

On Monday, Citigroup Inc. stated it would continue working with Fannie Mae. It added that it currently have plans on buying back mortgage loans. Every debt vended to the state-controlled mortgage unit that failed to meet its requirements would be bought back.

Citigroup's premarket trading off increased its stocks by 30 cents. This resulted to US$48.27 per share. 

© 2024 VCPOST, All rights reserved. Do not reproduce without permission.

Join the Conversation

Real Time Analytics