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Citigroup to Pay Freddie Mac $395 Million to End Mortgage Claims

Citigroup Inc., the third-biggest U.S. bank, agreed to pay Freddie Mac $395 million to resolve repurchase claims on soured mortgages sold to the government-backed firm over more than a decade.

The accord covers about 3.7 million loans sold to Freddie Mac between 2000 and 2012, the New York-based company said yesterday in a statement. The payment was covered by repurchase reserves as of June 30, Citigroup said.