Under terms of the agreements,rnannounced on Tuesday, Freddie Mac will, with some limitations and exclusions,rnrelease the companies from existing and future loan repurchase obligations forrnspecific populations of loans.  Thernpayments also compensate Freddie Mac for certain past losses and potentialrnfuture losses arriving out of denials, cancellations, or other actions relatedrnto private mortgage insurance.</p

The Wells Fargo settlement involves claimsrnagainst the bank regarding existing and future repurchase obligations for loansrnfunded by Freddie Mac prior to January 1, 2009 including approximately 6.7rnmillion loans sold by the bank to Freddie Mac between 2000 and 2008.  Wells Fargo has agreed to pay a total of $869rnmillion less credits of $89 million for previous repurchases and forrnreconciling adjustments.  </p

The Citigroup settlement will resultrnin a payment to Freddie of $395 million less $43 million in credits for otherrnrepurchases and adjustments.  It releasesrnthe bank from repurchase obligations for approximately 3.7 million loans fundedrnby Freddie Mac between 2000 and 2012.</p

SunTrust has agreed to pay FreddiernMac a total of $65 million, less credits of $25 million as in the agreementsrnabove.  In return the company willrnrelease the bank from repurchase obligations for approximately 312,000 loansrnthey funded between 2000 and 2008.</p

“With these settlements,rnFreddie Mac is recouping funds effectively due to the nation’s taxpayers,”rnsaid Freddie Mac CEO Donald H. Layton. “We believe these settlements are equitable,rnand we are pleased to have resolved legacy repurchase issues with three of ourrnvalued customers.” </p

All of the agreements were signed betweenrnSeptember 25 and September 30, 2013 and were approved by the Federal HousingrnFinance Agency (FHFA) as Freddie Mac’s conservator.

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