First Guaranty Sells $15 Million of Loans to Creditor Fannie Mae

Bankrupt First Guaranty Mortage Corp. reached a settlement to lower creditor Fannie Mae’s claims, a deal that includes a sale of up to $15 million of loans

Fannie Mae, a company that spurs mortgage lending by securitizing loans, claimed that it’s owed about $2.6 million from First Guaranty, according to filings Thursday in the US Bankruptcy Court for the District of Delaware.

Under the proposed settlement, Fannie Mae would buy up to $15 million from First Guaranty’s portfolio of eligible loans. First Guaranty also agreed to grant Fannie Mae broad liability releases.

Fannie Mae agreed to lower the claim from ...