Citigroup Agrees To Mortgage Settlement

Citigroup Inc, (C) has announced it has reached a mortgage settlement deal with Freddie Mac.

It was revealed by the banking company that it is set to pay $395 million (£245 million) to Freddie Mac to settle 3.7 million loans sold to the firm between 2000 and 2012.

Jane Fraser, chief executive of CitiMortgage, said in a statement that this is an "important milestone" for the remaining legacy mortgage issues at the bank.

Tom Fitzgerald, spokesman for Freddie Mac, added that the agreement was an "equitable one" and "allows both companies to move forward".

Freddie Mac lost hundreds of millions of dollars in the global recession, while other organisations such as Fannie Mae were among those to miss out.

Citigroup announced a deal in July that it will pay Fannie Mae $968 million for loans over a similar period to the ones given to Freddie Mac.

Last December saw Citigroup cut more than 10,000 jobs in a bid to save money.

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