U.S. Bancorp resolves repurchase obligations with Freddie Mac
Bank agrees to make a one-time payment of $53M
Freddie Mac and U.S. Bancorp (USB) reached an agreement that ends all repurchase obligations on loans the bank sold off to the government-sponsored enterprise in the years 2000 through 2008.
U.S. Bancorp will make a one-time payment of $53 million. The payment resolves allegations that the lender sold off loans to Freddie Mac that contained misrepresentations related to representations and warranties.
U.S. Bancorp said in a press statement that it’s fully reserved for the cost of the payout.