Citigroup to pay $395 mln to settle Freddie Mac mortgage claims
Sept 25 (Reuters) - Citigroup Inc on Wednesday said it agreed to pay $395 million to Freddie Mac to resolve claims on potential flaws in roughly 3.7 million mortgages it sold to the housing finance company from 2000 to 2012.
The third-largest U.S. bank said the settlement also covers potential future claims arising from the loans.
Citigroup said the $395 million payment is covered by its existing mortgage repurchase reserves as of June 30.
Freddie Mac was bailed out by the government in 2008, like its larger rival Fannie Mae.