Fifth Third Bancorp Agrees to Pay Freddie’s Mortgage Repurchase Claims
Fifth Third Bancorp of Cincinnati has entered into an agreement with Freddie Mac to resolve certain repurchase claims on mortgage loans originated and sold prior to Jan. 1, 2009.
The Bank will pay Freddie $25 million in cash as well as other credits and payments under the agreement.
The agreement is inclusive of loans Fifth Third originated and sold to Freddie by Jan. 1, 2009, “regardless of whether Freddie Mac has made a repurchase demand on any particular loan to date,” according to bank executives.
Fifth Third maintains that its mortgage representation and reserves on the loans covered by the agreement were deemed “fully sufficient to cover the payment amount.”
As of Sept. 30, 2013 the bank had $126 billion in diverse assets and $318 billion in assets under care.