Citigroup Resolves Potential Future Repurchase Claims With Freddie Mac

(RTTNews) - Citigroup (C) Wednesday announced agreement with Freddie Mac to resolve potential future repurchase claims for breaches of representations and warranties, regarding the 3.7 million loans sold to Freddie Mac between 2000 and 2012.

Under the terms of agreement, Citi will pay Freddie Mac $395 million, all of which was covered by Citi's existing mortgage repurchase reserves as of June 30.

The agreement does not release Citi's liability with respect to its servicing or other ongoing contractual obligations on the included loans. Citi currently believes it is adequately reserved for the loans not covered by the agreement.

Looking ahead, Citi will continue to work with Freddie Mac on the timely repurchase of any mortgage loans sold to Freddie Mac that do not meet Freddie Mac's requirements.