Move lawsuit against Zillow clears contempt hurdle with settlement

Move lawsuit against Zillow clears contempt hurdle with settlement

Move declares "full steam ahead" in prosecution

Twitter roundup of this week's top housing articles

CFPB heads up the list

Shaky housing market about to get even shakier

When will we all stop kidding ourselves?
W S
Investments

Citi agrees to $1.125 billion mortgage bond investor settlement

Resolves legacy mortgage-backed securities

Citi
/ Print / Reprints /
| Share More
/ Text Size+

Citigroup announced that it reached an agreement with 18 institutional investors, represented by Gibbs & Bruns, regarding the resolution of certain legacy private-label securitization representation and warranty repurchase claims.

Citigroup will offer to the trustees of 68 Citi-sponsored mortgage securitization trusts to pay $1.125 billion to the trusts, plus certain fees and expenses.

According to a release, the 68 trusts covered by the agreement issued in the aggregate $59.4 billion of residential mortgage-backed securities and represent all of the trusts established by Citi's legacy securities and banking business during 2005-2008.

The agreement, if accepted by the trustees, would release Citi obligation to repurchase mortgage loans sold into the trusts.

"This settlement resolves a significant legacy issue from the financial crisis and we are pleased to put it behind us," Citi said in a statement.

Recent Articles by Jacob Gaffney

Comments powered by Disqus