Fifth Third Bancorp has agreed to settle outstanding repurchase claims with the Federal Home Loan Mortgage Corp., though the amount of the settlement pales in comparison to other similar agreements this year with the government-controlled enterprise.
The Cincinnati-based financial services company said Monday that it has reached an agreement with Freddie Mac to resolve certain repurchase claims.
The agreement covers residential loans originated and sold to the McLean, Va.-based secondary lender prior to Jan. 1, 2009, regardless if any repurchase demands on the loans have already been made.
Fifth Third said the agreement calls for it to make a $25 million cash payment after paid claim credits and other adjustments.
“As of Sept. 30, 2013, Fifth Third’s mortgage representation and warranty reserves associated with the loans covered by the agreement were fully sufficient to cover the payment amount,” the statement said.
Fifth Third is by no means the only company to settle with Freddie over outstanding repurchase demands outstanding.
JPMorgan Chase & Co. disclosed last month a $4 billion settlement with the Federal Housing Finance agency that included $2.74 billion to Freddie to resolve outstanding repurchase litigation and demands.
Earlier in October, SunTrust Banks Inc. announced a $65 million repurchase settlement.
Wells Fargo & Co. said in September it would pay $869 million to settle repurchase demands with Freddie, while Citigroup Inc. just days earlier disclosed a $395 million repurchase settlement with Freddie.
