Dec. 30--Wells Fargo will pay more than half a billion dollars to mortgage giant Fannie Mae to settle a disagreement over bad loans sold by the bank before the financial crisis.
The San Francisco bank announced Monday that it had reached a $591 million agreement with Fannie Mae to cover all mortgages sold before 2009. Wells Fargo will make a cash payment of $541 million after adjusting for deals the two have made before. Wells says it has already set aside enough money to cover the settlement.
The agreement marks the latest in a string of settlements between major banks, Fannie Mae and the government regulator that oversees the agency, the Federal Housing Finance Agency.
Nearly a year ago, Charlotte-based Bank of America agreed to pay $10 billion to settle claims with Fannie Mae. The deal included $3.6 billion in cash and required the repurchase of more than 30,000 loans.