Flagstar Bancorp (FBC) in Troy, Mich., has agreed to pay Freddie Mac $8.9 million in order to settle mortgage repurchase claims.
The settlement covers loans originated and sold to the government-sponsored entity between Jan. 1, 2000 and Dec. 31, 2008, according to Flagstar’s Monday press release. The $11.8 billion-asset Flagstar said that it has enough money in its representation and warranty reserve to cover the payment.
“This agreement is another positive step for Flagstar in further reducing the company’s risk profile while supporting improved performance,” Alessandro DiNello, Flagstar’s president and chief executive, said in the release. “We believe that our accomplishments in 2013 have positioned Flagstar for sustainable long-term growth in 2014 and beyond.”