Tuesday, October 1, 2013

More Big Moolah To Be Paid to Freddie Mac

Citigroup is coughing up 395 million to Freddie Mac to settle potential future repurchase claims on millions of loans sold to the GSE in the last 10 years. Citi has that 395M in their existing reserves for just such an expenditure.

This agreement handles claims for misrepresentation on 3.7 million loans sold by Citi to Freddie.

Any loans not covered by this pay-out Citi says they still have enough in reserves to handle them.

Apparently Citi is one of the few banks that have reached an agreement with the FHFA over allegations of misrepresented loans sold to both GSE's.

I suppose if more would cough up the cash for crappy loans, the GSE's wouldn't be asking for that 1.7 bailout from the rest of us.

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