Citigroup To Pay $1B In Fannie Mae Mortgage Buyback Deal

Law360, New York (July 1, 2013, 12:20 PM EDT) -- Citigroup Inc. on Monday agreed to pay $968 million to resolve repurchase claims related to 12 years' worth of mortgages the country's third-largest bank by assets sold to Fannie Mae.

The settlement resolves representation and warranties claims related to 3.7 million first-lien mortgages Citigroup's mortgage unit sold to Fannie Mae between 2000 and 2012, the bank said in a statement.

Citigroup will continue to service the mortgages and be bound by other contractual obligations, however.

“This agreement resolves substantially all potential future repurchase claims from them...
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