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Wells Fargo reaches $591 million settlement with Fannie Mae over mortgage securities
http://www.rawstory.com/rs/2013/12/30/wells-fargo-reaches-591-million-settlement-with-fannie-mae-over-mortgage-securities/
Wells Fargo reaches $591 million settlement with Fannie Mae over mortgage securities
By Agence France-Presse
Monday, December 30, 2013 10:47 EST
US bank Wells Fargo has reached a $591 million settlement to resolve mortgage claims with state-controlled lender Fannie Mae, the two companies announced Monday.
Fannie Mae said Wells Fargo will pay $541 million in the fourth quarter to resolve repurchase requests on certain loans originated prior to 2009, and was credited for prior repurchases.
Wells Fargo, the fourth-largest US bank by assets, said it had accrued the cost of the agreement on September 30.
The settlement resolves Fannie Mae’s claim that Wells Fargo overstated the quality of mortgage securities it sold the quasi-public mortgage finance giant in the run-up to the 2008 financial crash.
