Freddie Mac Announces Settlements Totaling Approximately $3.2 Billion With
MCLEAN, VA -- (Marketwired) -- 10/25/13 -- Freddie Mac (OTCQB: FMCC)
today announced it has entered into an agreement with JPMorgan Chase
concerning Freddie Mac's claims related to representations and
warranties on single-family loans sold to Freddie Mac. Separately,
Freddie Mac, Fannie Mae and FHFA also entered into an agreement with
JPMorgan Chase to settle litigation concerning investments by Freddie
Mac and Fannie Mae in residential non-agency mortgage-related
In total, Freddie Mac will be paid approximately $3.2 billion under
the two agreements.
"These settlements represent solid progress in our continuing efforts
to resolve legacy issues and recoup funds that are due to America's
taxpayers," said Freddie Mac CEO Donald H. Layton. "We believe these
are equitable resolutions, and we are pleased to have concluded these
matters with one of our valued customers."
Details of the agreements are as follows:
-- On October 25, 2013, Freddie Mac, Fannie Mae and FHFA entered into an
agreement with JPMorgan Chase & Co. and certain affiliated
entities (collectively, "JPMorgan") and other persons to settle
litigation previously initiated by FHFA against JPMorgan relating to
investments by Freddie Mac and Fannie Mae in certain residential
non-agency mortgage-related securities largely originated, issued or
underwritten by JPMorgan. Under the settlement, JPMorgan will make a
total payment of $4 billion, of which approximately $2.74 billion is
expected to be paid to Freddie Mac.
-- On October 25, 2013, Freddie Mac entered into an agreement with
JPMorgan Chase Bank, National Association ("Chase") under which
Freddie Mac will, subject to specified limitations and exclusions,
release Chase from certain existing and future loan repurchase
obligations relating to approximately 1.8 million loans purchased by
Freddie Mac between 2000 and 2008, as well as certain other
obligations. In exchange, Chase agreed to pay Freddie Mac a total of
$480 million (less credits up to $60 million for repurchases already
made and for reconciling adjustments). The agreement was approved by
as Freddie Mac's Conservator.
Freddie Mac was established by Congress in 1970 to provide liquidity,
stability and affordability to the nation's residential mortgage
markets. Freddie Mac supports communities across the nation by
providing mortgage capital to lenders. Today Freddie Mac is making
home possible for one in four home borrowers and is one of the
largest sources of financing for multifamily housing.
www.FreddieMac.com. Twitter: @FreddieMac
Press spacebar to pause and continue. Press esc to stop.