Citigroup Will Pay Fannie Mae $968 Million on Faulty Loans
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Citigroup Inc., the third-largest U.S. bank by assets, will pay Fannie Mae $968 million to compensate the taxpayer-backed mortgage buyer for more than a decade of claims tied to faulty home loans.
The agreement includes 3.7 million mortgages originated from 2000 to 2012 and sold to Fannie Mae, New York-based Citigroup said today in a statement. While payments are covered by existing reserves, the lender set aside an additional $245 million in the second quarter.