A major lender has entered an agreement that will see it pay out $93.5m to Fannie Mae.
Flagstar has announced it has entered into an agreement with Fannie Mae over repurchase claims on mortgages it sold between January 1, 2000 and December 31, 2008. The agreement will see the lender pay Fannie Mae $93.5m after claim credits and other adjustments, down from the total resolution amount of $121.5m.
Sandro DiNello, Flagstar president and CEO, said the agreement resolved "legacy issues" for the lender.
"This agreement represents another significant milestone in Flagstar's resolution of legacy issues. We remain dedicated to providing high quality products and services to our customers while further reducing risk and improving performance. We are confident that we are taking the right steps to deliver improved financial results and shareholder returns."
Bradley Lerman, Fannie Mae Executive Vice President and General Counsel, touted the resolution as "another sign of progress in resolving outstanding issues".
"It is important for Fannie Mae and lenders to focus on doing good, solid business today as we build a sustainable mortgage finance system for the future," Lerman said.