PNC Reaches $89M Settlement with Freddie Mac

Mortgage & Real Estate

PNC Financial Services Group in Pittsburgh has agreed to pay $89 million to Freddie Mac in order to resolve repurchase obligations on loans sold to the government-sponsored entity.

The $298-billion-asset PNC said Friday that the settlement covers approximately 900,000 loans originated and sold to Freddie Mac between 2000 and 2008.

PNC agreed in October to pay Fannie Mae an undisclosed sum in order to resolve repurchase demands on loans sold between 2000 and 2008. The two settlements will effectively resolve all of PNC’s repurchase obligations for loans sold to the GSEs between 2000 and 2008, according to the company’s press release.

PNC said that the amount of the settlements had been fully accrued as of Sept. 30.

Both settlements must still be approved by the Federal Housing Finance Agency, which regulates Fannie Mae and Freddie Mac.

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