Dec 6 PNC Financial Services Group Inc
will pay Freddie Mac $89 million to resolve all
repurchase liabilities on home loans sold to the
government-backed housing agency through the end of 2008.
The settlement will compensate for past losses and any
potential future losses on 900,000 loans sold to Freddie Mac
between 2000 and 2008, PNC said in a statement.
Most of the loans covered under the settlement stem from
National City, which PNC bought for $5.2 billion during the
financial crisis in 2008.
PNC joins other U.S. banks that have settled with Freddie
Mac and Fannie Mae, another government-controlled
mortgage company, with regard to the troubled companies they
acquired during the financial crisis.
Earlier this week, Bank of America said it settled
with Freddie Mac on all claims arising from residential
mortgages sold to the agency through the end of 2009.
In January, Bank of America agreed to pay Fannie Mae $3.6
billion to resolve repurchase claims over Countrywide and Bank
of America loans from 2000 to 2008.
PNC shares were up 1 percent at $ 75.98 in early trading
Friday on the New York Stock Exchange.