Citigroup Agrees To Pay $968M to Fannie Mae

8:00 AM, Jul 1, 2013   |    comments
A cyclist rides his bike past the Citigroup center in San Francisco (Getty)
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NEW YORK (AP) - Citigroup has agreed to pay $968 million to Fannie Mae to resolve potential future repurchase claims on residential mortgage loans originated between 2000 and 2012.

The agreement covers claims for breaches of representations and warranties on 3.7 million loans. The deal doesn't release Citigroup's liability for servicing and other ongoing contractual obligations for the loans.

The bank anticipates a $245 million residential mortgage reserve for its second quarter, consistent with reserves from recent quarters. The company will report its quarterly results on July 15.

Citigroup Inc. said Monday that it will continue to work with Fannie Mae on buying back any mortgage loans sold to the government-controlled mortgage entity that don't meet its requirements.

Citigroup's stock added 30 cents to $48.27 in premarket trading.

(Copyright 2013 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)

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