Citigroup said yesterday that it had agreed to pay the mortgage finance giant Fannie Mae $968 million to resolve any claims on 3.7 million mortgage loans that might sour, the New York Times DealBook blog reported yesterday. The company said that the settlement would apply to troubled loans as well as any potential future claims on loans that originated between 2000 and 2012 that were purchased by Fannie Mae, which was bailed out by the government during the financial crisis. The company will continue to service the mortgage loans covered under the deal. Citigroup said that most of the settlement amount was covered by the bank’s existing mortgage repurchase reserves.
