Citigroup Announces Agreement with Fannie Mae to Resolve Potential Future Mortgage Repurchase Claims

  Citigroup Announces Agreement with Fannie Mae to Resolve Potential Future
  Mortgage Repurchase Claims

           Agreement covers loans originated between 2000 and 2012

Business Wire

NEW YORK -- July 1, 2013

Citigroup today announced an agreement with Fannie Mae to resolve potential
future repurchase claims for breaches of representations and warranties on 3.7
million residential first mortgage loans sold to Fannie Mae that were
originated between 2000 and 2012 (“Covered Loans”). Citi agreed to pay Fannie
Mae $968 million under the agreement, substantially all of which was covered
by Citi’s existing mortgage repurchase reserves as of March 31, 2013.

Jane Fraser, CEO of CitiMortgage, said, “We have a strong and productive
relationship with Fannie Mae. This agreement resolves substantially all
potential future repurchase claims from them for loan originations from 2000
to 2012. As we work to deepen and enhance financial relationships with our
clients, we will continue to focus on the production of high-quality mortgage
loans.”

Citi’s agreement with Fannie Mae covers potential future origination-related
representation and warranty claims on the Covered Loans. It does not release
Citi’s liability with respect to its servicing or other ongoing contractual
obligations on the Covered Loans. It also does not release liability to a
population of less than 12,000 loans originated between 2000 and 2012 with
certain characteristics such as loans sold with a performance guaranty or
under special credit enhancement programs. Citi currently believes it is
adequately reserved for the loans not covered by the agreement. Citi has and
will continue to work with Fannie Mae on the timely repurchase of any mortgage
loans sold to Fannie Mae that do not meet Fannie Mae’s requirements.

Citi will issue its second quarter results on July 15, 2013. Citi currently
estimates that it will record a residential mortgage repurchase reserve build
of $245 million in the second quarter of 2013, which is generally consistent
with its repurchase reserve builds in recent quarters.

Citi

Citi, the leading global bank, has approximately 200 million customer accounts
and does business in more than 160 countries and jurisdictions. Citigroup
provides consumers, corporations, governments and institutions with a broad
range of financial products and services, including consumer banking and
credit, corporate and investment banking, securities brokerage, transaction
services, and wealth management.

Additional information may be found at www.citigroup.com | Twitter: @Citi |
YouTube: www.youtube.com/citi | Blog: http://blog.citigroup.com | Facebook:
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Certain statements in this release, including the adequacy of Citi’s loan loss
reserves for loans not covered by the agreement with Fannie Mae and Citi’s
estimated residential mortgage repurchase reserve build for the second quarter
of 2013, are “forward-looking statements” within the meaning of the rules and
regulations of the U.S. Securities and Exchange Commission. These statements
are based on management’s current expectations and are subject to uncertainty
and changes in circumstances. Actual results and capital and other financial
conditions may differ materially from those included in these statements due
to a variety of factors, including but not limited to the precautionary
statements included in this document, completion of the final financial and
accounting review of Citi’s results of operations for the second quarter of
2013, and trends in residential mortgage repurchase claims,
repurchases/make-whole payments and default rates. More information about
these factors and other factors that may affect Citi’s future results is
contained in Citi’s filings with the U.S. Securities and Exchange Commission,
including without limitation the “Risk Factors” section of Citi’s 2012 Annual
Report on Form 10-K. Precautionary statements included in such filings should
be read in conjunction with this document.

© 2013 Citigroup Inc. Citibank, N.A., Member FDIC. Citi and Citibank and Arc
Design are registered service marks of Citigroup Inc.

Contact:

Citigroup
Media:
Mark Costiglio, 212-559-4114
Investors:
Susan Kendall, 212-559-2718
Fixed Income Investors:
Peter Kapp, 212-559-5091
 
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