Freddie Mac 2015 Annual Report Download - page 302

Financial Statements Notes to the Consolidated Financial Statements | Note 13
Freddie Mac 2015 Form 10-K 300
We have also been working with an investor consortium that seeks to enforce certain claims relating to
certain Citigroup non-agency mortgage-related securities. In April 2014, Citigroup Inc. entered into a
settlement agreement with the trustees of the securities covered by the settlement. In December 2015, a
New York state court entered a judgment approving the settlement in all respects. The order became final
in January 2016. It is likely that the conditions of the settlement will be fully satisfied in the near term. As a
result, we expect to receive a benefit for those securitizations that we hold at the time of such
distributions. This benefit, which is expected to be approximately $0.1 billion, will be reflected in earnings
through higher net income recognized over the expected life of the securities.
We also entered into a settlement agreement with Sand Canyon Corporation (formerly known as Option
One Mortgage Corporation) in December 2015 to resolve contractual claims with respect to certain non-
agency mortgage-related securities that we hold.
A significant portion of the single-family loans underlying our investments in non-agency mortgage-related
securities is serviced by non-depository servicers. As of December 31, 2015 and 2014, approximately
$13.0 billion and $17.9 billion, respectively, in UPB of loans underlying our investments in single-family
non-agency mortgage-related securities were serviced by subsidiaries and/or affiliates of Ocwen.