Wells Fargo to pay $541M in mortgage settlement

TRD New York /
Dec.December 31, 2013 12:14 PM

Wells Fargo Bank, the biggest mortgage lender in the U.S., agreed yesterday to pay $541 million to Fannie Mae in order to settle allegations over troubled home loans.

The settlement was for a total of $591 million, but has been reduced due to credit from previous loan buybacks by the banks. As part of the same set of deals with the government-sponsored entity, Citigroup agreed to pay $968 million and Bank of America $3.6 billion, earlier this year.

Eight leading lenders have settled with Fannie, for a total of $6.5 billion, according to Reuters. This latest deal ends the GSE’s attempts to make recompense for bad mortgage products it bought on the lead up to the recession.

“We have closed out our legacy repurchase reviews with this agreement,” Timothy Mayopoulos, chief executive of Fannie Mae, said in a statement, as Reuters reported. “This agreement represents a fitting conclusion to our year of hard work to put legacy issues in the rear view mirror and begin 2014 focused on improving the future of housing finance.”

The Federal Housing Finance Agency has also filed suits against several banks regarding mortgage-backed securities acquired by Freddie Mac and Fannie Mae that they allege were improperly marketed.

Wells Fargo Bank recently teamed up with Criterion Real Estate Capital to provide $525 million in acquisition financing to enable the Witkoff Group and Jynwel Capital to buy Manhattan’s Helmsley Park Lane Hotel[Reuters]Mark Maurer


Related Articles

arrow_forward_ios
Jackson Park at 28-40 Jackson Avenue and Tishman Speyer's Rob Speyer (Credit: StreetEasy and Tishman Speyer)

Tishman Speyer locks in $1B in financing for Jackson Park

Cammeby's International Group founder Rubin Schron and, from top: 194-05 67th Avenue, 189-15 73rd Avenue and 64-05 186th Lane (Credit: Google Maps)

Ruby Schron lands $500M refi for sprawling Queens apartment portfolio

1735 York Avenue and Bonjour Capital's Charles Dayan (Credit: Google Maps)

Dayan’s Bonjour Capital inks $115M refi for Upper East Side building

Banks see uptick in mortgages, but remain wary ahead of potential Fed interest rate cut

Wall Street warns against privatizing Fannie and Freddie without Congress guarantee

Trump official to pressure Congress to privatize Freddie and Fannie

Trump’s move to take Fannie and Freddie private could mean higher mortgage costs

Mortgage guarantors Fannie Mae and Freddie Mac to return to private control

arrow_forward_ios