The M Report – Tory Barringer
Citigroup and Fannie Mae announced Monday an agreement to resolve future repurchase claims for breaches of representations of warranties on millions of loans originated between 2000 and 2012. According to release from Citi, the agreement covers 3.7 million residential first mortgage loans sold to Fannie Mae. Citi is not released from liability regarding servicing or other ongoing contractual obligations on those loans; the bank is also still responsible for a population of less than 12,000 loans originated in the same time frame with certain characteristics such as those sold with a performance guaranty or under special credit enhancement programs. As part of the agreement, Citi will pay Fannie Mae $968 million, “substantially all of which was covered” by the bank’s existing mortgage repurchase reserves as of the end of the first quarter.