TheStreet.com reported yesterday that Citigroup saw its mortgage repurchase reserves jump by 30% in the third quarter of this year, foreseeing an increase in repurchase requests by Fannie Mae and Freddie Mac.

According to TheStreet.com, Citigroup had $952 million in reserves for Q3 2010 —more than three times the amount the bank had reserved during the same quarter in 2009. An additional $3 million was added due to new mortgage sales during the third quarter in 2010. As of September 30, Citi has a servicing portfolio of $504 million, with 3% of the portfolio representing loans securitized to private investors.

For the fifth straight quarter, Citi has faced repurchase losses. For Q3 2010, Citi reported $100 million in repurchase losses, up from $74 million in Q2 2010 and $26 the third quarter of 2009. This is despite the fact that the number of repurchase requests fell from 2,800 in the second quarter to 2,000 in the third quarter; however, it’s higher than the Q3 2009 figure of 1,800. But, with Fannie and Freddie requiring banks such as Citi to buy back these bad loans that contributed to the housing market crash, the number of requests could increase.

Not all of the news for Citi was bad. For the third straight quarter, the bank reported a profit with third-quarter earnings of $2.16 billion, beating Wall Street estimates. The stock market responded yesterday with positive gains.