Flagstar Bancorp in Troy, Mich., has agreed to pay Freddie Mac $8.9 million in order to settle mortgage repurchase claims.

The settlement covers loans originated and sold to the government-sponsored entity between Jan. 1, 2000 and Dec. 31, 2008, according to Flagstar's Monday press release. The $11.8-billion-asset Flagstar said that it has enough money in its representation and warranty reserve to cover the payment.

Subscribe Now

Authoritative analysis and perspective for every segment of the mortgage industry

30-Day Free Trial

Authoritative analysis and perspective for every segment of the mortgage industry