2 reasons the single-family rental securitization market won’t exceed $20 billion

Should mortgage technology and data be universally shared?

Yes, and no

Structural changes, oversight and second-lien reform critical for PL MBS

The game has to be changed to bring back private label capital
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