Freddie Mac Announces Settlements Totaling More Than $1.3 Billion With Major Financial Institutions

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Freddie Mac Announces Settlements Totaling More Than $1.3 Billion With Major Financial Institutions

MCLEAN, VA–(Marketwired – Oct 1, 2013) – Freddie Mac (OTCQB: FMCC) today announced that it has entered into agreements with three financial institutions concerning Freddie Mac’s claims related to representations and warranties on single-family loans sold to Freddie Mac. These agreements, under which Freddie Mac will be (or has been) paid a total of approximately $1.3 billion, are discussed below.

“With these settlements, Freddie Mac is recouping funds effectively due to the nation’s taxpayers,” said Freddie Mac CEO Donald H. Layton. “We believe these settlements are equitable, and we are pleased to have resolved legacy repurchase issues with three of our valued customers.”

Under all three agreements, Freddie Mac will, subject to specified limitations and exclusions, release the firms from certain existing and future loan repurchase obligations relating to specific populations of single-family loans and certain other obligations. The payments to Freddie Mac also compensate Freddie Mac for certain past losses and potential future losses relating to denials, rescissions and cancellations of mortgage insurance.

All of the agreements were approved by FHFA, as Freddie Mac’s Conservator.

Details of the agreements are as follows:

  • On September 27, 2013, Freddie Mac entered into agreements with Wells Fargo Bank, National Association (“Wells Fargo”) under which Wells Fargo agreed to pay Freddie Mac a total of $869 million (less credits of $89 million for repurchases already made and for reconciling adjustments). Under the agreements, Freddie Mac has released Wells Fargo from certain existing and future repurchase obligations for loans funded by Freddie Mac prior to January 1, 2009, including approximately 6.7 million loans sold to Freddie Mac from 2000 through 2008.
  • On September 25, 2013, Freddie Mac entered into an agreement with CitiMortgage Inc. and Citibank, National Association (collectively, “Citigroup”) under which Citigroup agreed to pay Freddie Mac a total of $395 million (less credits of $43 million for repurchases already made and for reconciling adjustments). Under the agreement, Freddie Mac has released Citigroup from certain existing and future repurchase obligations for approximately 3.7 million loans funded by Freddie Mac between 2000 and 2012.
  • On September 30, 2013, Freddie Mac entered into an agreement with SunTrust Mortgage, Inc. (“SunTrust”) under which SunTrust agreed to pay Freddie Mac a total of $65 million (less credits of $25 million for repurchases already made and for reconciling adjustments). Under the agreement, Freddie Mac has released SunTrust from certain existing and future repurchase obligations for approximately 312,000 loans funded by Freddie Mac between 2000 and 2008.

More here…

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Comments
3 Responses to “Freddie Mac Announces Settlements Totaling More Than $1.3 Billion With Major Financial Institutions”
  1. BOBBI SWANN says:

    Despite the words from Freddie Mac ““With these settlements, Freddie Mac is recouping funds effectively due to the nation’s taxpayers,” said Freddie Mac CEO Donald H. Layton.: Really???!!! Then tell us ,please, how you are going to divey up the pot that you got, eh??? It’s all bullshit and all lies. The press only releases what the gov’t wants you to hear. Nothing more. There is no settlement monies, it’s all paper crap! Oh,,,,well, maybe Freddie Mac will allow them to make payments back on the penalties or whatever from the amount of the bailout funds they all got!

  2. pamelag says:

    I guess I have to re read this….????

  3. 4evrmoi says:

    So … you who “understand” this … just what does this mean? We who have had our homes “stolen” from us through foreclosure by these corrupt mortgage companies … do WE get any settlement???

    NOTHING THEY CAN OFFER WILL EVER REPLACE THE EMOTIONAL PAIN AND DURESS I ENDURED FIGHTING TO KEEP MY HOME OF 35 YEARS! I’M STILL FIGHTING TO GET MY HOME BACK!!! I WANT MY HOME BACK!!!!

    There was NO REASON Freddie Mac/CitiMortgage could not work with me on restructuring the amount yet owed … they simply, REFUSED – claiming a “law” that did NOT exist! They were hell-bent to TAKE my home as Freddie Mac actually stated to my Congressman who was investigating my complaint … “We are NOT INTERESTED IN M_ _ _ _ _ _ _ _ OFFER … WE ARE ONLY INTERESTED IN RESELLING THE PROPERTY AT A ‘FAIR MARKET VALUE’ “.

    Guess what, folks? They SOLD my home for a mere $55,000 . . . we owed $68,132.51, … which I OFFERED. What I requested was for them to restructure the loan for a new period at current interest, which IS what I proposed!

    Q: WAS my home STOLEN???

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