WASHINGTON — Citigroup has agreed to pay $395 million to the government-controlled mortgage finance company Freddie Mac to settle claims on home loans it had sold to it. þþThe agreement, announced on Wednesday, involves 3.7 million mortgages that were sold from 2000 to 2012. þþFreddie and its bigger sibling, Fannie Mae, pressed Citigroup and other big banks to take back mortgages they had sold that soured in the housing collapse. In July, Citigroup agreed to pay $968 million to settle similar claims from Fannie. þþBank of America paid $2.6 billion in 2011 to settle claims on home loans sold to Fannie and Freddie. þþCitigroup said the agreement was an important milestone in resolving its mortgage issues stemming from the 2008 financial crisis. þþA Freddie spokesman said it was fair settlement and allowed both companies to move forward. þ
Source: NY Times
