U.S. Bancorp Settles Freddie Repurchase Demands

U.S. Bancorp has agreed to pay Freddie Mac $53 million to resolve mortgage repurchase demands by the government-sponsored enterprise.

After adjusting for credits related to prior repurchases, U.S. Bancorp will make a one-time $53 million cash payment to Freddie Mac, the company says.

The settlement resolves substantially all repurchase demands related to representation and warranty obligations made on loans sold to Freddie Mac between 2000 and 2008, U.S. Bancorp says.

The Minneapolis-based bank says it is fully reserved for the cost of the agreement. Its third-quarter securities filing shows U.S. Bancorp had $176 million in reserves for potential losses due to representation and warranty claims.

Article source: http://www.nationalmortgagenews.com/dailybriefing/US-Bancorp-Settles-Freddie-Repurchase-Demands-1040222-1.html

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