SunTrust Settles Freddie Mac Home Loan Claims For $65M

Law360, New York (October 1, 2013, 8:53 PM EDT) -- SunTrust Banks Inc. said Tuesday it has agreed to a $65 million settlement with the Federal Home Loan Mortgage Corp. over the bank's obligations to repurchase home loans that foundered after Freddie Mac had bought them.

The Atlanta-based bank will make a one-time cash payment of $40 million to Freddie Mac, SunTrust said in a statement Tuesday. The remaining $25 million will be taken in credits for mortgages the bank has already bought back, according to the deal.

"We are pleased to enter into this agreement...
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