Wells reaches $591M agreement with Fannie Mae

|About: Wells Fargo & Co. (WFC)|By:, SA News Editor

Wells Fargo (WFC) is the latest to settle with one of the GSEs, agreeing to settle repurchase claims on mortgages sold to Fannie Mae (originated prior to 2009) for $591M. Wells will write a check to Fannie for $541M after adjustments for credits related to certain prior repurchases.

Wells has fully reserved for the cost of the agreement.

“We have closed out our legacy repurchase reviews with this agreement with Wells Fargo,” says Fannie Mae (FNMA +0.3%) CEO Timothy J. Mayopoulos.  “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.”