Friday, December 6, 2013

PNC to pay Freddie Mac $89M

PNC Financial Services Group said Friday it has reached an $89 million settlement with Freddie Mac over mortgages sold to the government-backed housing agency leading up to the financial crisis.

Pittsburgh-based PNC, the 11th-largest bank by market share in the Charlotte area, said the deal covers loans sold from 2000 and 2008. It resolves PNC's existing and future obligations to repurchase roughly 900,000 loans.

Since the crisis, Freddie Mac and its sister agency, Fannie Mae, have asked many banks to buy back mortgages that went sour. Friday's settlement resolves "substantially all" of PNC's outstanding and potential repurchase obligations stemming from loans sold to Freddie Mac and Fannie Mae from 2000 to 2008, the bank said.

PNC reached an earlier agreement with Fannie Mae to resolve repurchase demands.

Earlier this week, Bank of America announced a $404 million settlement with Freddie Mac over mortgage-repurchase claims.

PNC shares were up 1.4 percent at $76.10 in early afternoon trading Friday.