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SunTrust paying $65M in mortgage deal with Freddie

[October 02, 2013]  WASHINGTON (AP) -- SunTrust Banks Inc. has agreed to a $65 million settlement with Freddie Mac over claims on home loans it sold to the government-controlled mortgage finance company.

The agreement announced Tuesday involves about 312,000 mortgages sold to Freddie between 2000 and 2008. The amount of the agreement was adjusted to reflect $25 million in credits for previous claims payments, resulting in a cash payment to Freddie of $40 million. Freddie and its bigger sibling Fannie Mae demanded that Atlanta-based SunTrust and other big banks buy back mortgages they sold that later soured in the housing bust.

It was the third such agreement for Freddie in recent days, following an $869 million settlement with Wells Fargo & Co. announced Monday and a $395 million deal with Citigroup Inc. last week.

[Associated Press]

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