The Federal Home Loan Mortgage Corp. has racked up another settlement with a large seller-servicer over repurchase demands.
Since September, Freddie Mac has reached agreements to settle representation and warranty claims with Bank of America Corp., Citigroup Inc., Fifth Third Bancorp, JPMorgan Chase & Co., SunTrust Banks Inc. and Wells Fargo & Co.
In all, the combined settlements with the six lenders have so far netted the McLean, Va.-based firm around $4.498 billion.
Now, The PNC Financial Services Group Inc. has joined the fray.
The Pittsburgh-based company said Friday that it has reached a settlement with Freddie that covers existing and future repurchase obligations on around 900,000 loans originated and sold to Freddie between 2000 and 2008.
The settlement also compensates Freddie for certain past losses and potential future losses relating to denials, rescissions and cancellations of mortgage insurance.
The agreement will cost PNC $89 million less $8 million in credits.
PNC said it previously agree to settle repurchase demands on loans sold to Fannie Mae between 2000 and 2008.
“The agreements remain subject to final documentation and approvals by Freddie Mac’s and Fannie Mae’s regulator,” PNC stated. “The amount of the settlements with Freddie Mac and Fannie Mae had been fully accrued by PNC Bank as of Sept. 30, 2013.”
