Wells Fargo in US$591 mil. deal with Fannie Mae after housing loan mess
APSAN FRANCISCO--Wells Fargo says it has made a US$591 million deal with Fannie Mae to settle obligations related to loans that went bad after the housing bubble burst.
January 2, 2014, 12:14 am TWN
The deal announced Monday covers loans made through 2008. Wells Fargo & Co. says it resolves nearly all repurchase liabilities it has with Fannie Mae, the federal mortgage buyer.
After adjusting for other repurchases, San Francisco-based Wells Fargo will pay out US$541 million, which it says it had already set aside. Wells Fargo agreed in September to pay US$869 million to Freddie Mac to settle similar claims.
Lenders including Bank of America, Citigroup and JPMorgan Chase have also agreed to settle mortgage claims with Fannie this year.