According to Businessweek, Citigroup (C) agreed to pay Freddie Mac $395 million to resolve potential future repurchase claims tied to about 3.7 million loans sold to Freddie between 2000 and 2012.

The deal with Freddie Mac is “another important milestone in successfully resolving Citi’s remaining legacy mortgage issues,” Jane Fraser, chief executive officer of CitiMortgage, said.

The deal doesn’t release the bank from liability tied to servicing the loans. It excludes less than 1,000 loans from the period, and Citigroup said it believes it is adequately reserved for those.