Fifth Third Bancorp expects mortgage repurchase hit
Fifth Third Bancorp said it is experiencing higher levels of mortgage repurchase requests from government-sponsored enterprises and expects expenses related to the putbacks to increase this quarter, a company executive said Tuesday. Fifth Third management said at the Barclays Capital Global Financial Services Conference that the company was experiencing increased claims, file requests and likely losses this quarter from mortgage repurchases. The Cincinnati-based bank has modeled higher third-quarter repurchase reserves as a result. Fifth Third did not disclose a specific figure for the expected increase in repurchase reserves.