Commenting on the settlement, CitiMortgage CEO Jane Fraser said that the agreement settles substantially all potential future repurchase claims and helps the firm to deepen and enhance financial relationships with its clients.
The latest agreement covers potential future origination-related representation and warranty claims on the Covered Loans.
In a statement, the bank said, "Citi has and will continue to work with Fannie Mae on the timely repurchase of any mortgage loans sold to Fannie Mae that do not meet Fannie Mae’s requirements."
In a similar case, BofA agreed to reimburse $3.6bn in cash to Fannie Mae and repurchase $6.75bn of mortgages in January this year.
Servicing nearly 200 million customer accounts and trading in over 160 nations and regions, Citi offers financial products and services, including consumer banking and credit, corporate and investment banking, securities brokerage, transaction services, and wealth management.
