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Real Estate

Mortgage misrepresentation: Citigroup coughs up $968 million

Citigroup has agreed to pay Fannie Mae $968 million for millions of mortgages the bank is accused of misrepresenting to the mortgage giant.

Fannie Mae alleges bank officials had failed to confirm underwriting details on the loans, such as borrower income. About 3.7 million mortgages that Citi sold to Fannie Mae between 2000 and 2012 are part of the resolution agreement, Mortgage News Daily reported.

The agreement "resolves legacy repurchase issues, compensates taxpayers for losses, and allows Fannie Mae and Citi to move forward and strengthen our business relationship," said Bradley Lerman, Fannie Mae executive vice president and general counsel. "We continue to focus on making strong progress in resolving repurchase requests with other lenders, and remain committed to helping people to buy, refinance or rent a home."

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