Another Big Bank Bad-Mortgage Settlement

Mortgage-lending/banking giant Wells Fargo & Co. settled with Fannie Mae for $591 million for losses on bad mortgages Wells Fargo sold Fannie Mae before 2009.

Those mortgages contributed to a collapse of the housing market and the economic downturn. Today's announcement concludes its review of the so-called legacy loans that Fannie Mae  purchased in the 2005-2008 run up to the crash.

Fannie Mae says that today's settlement is one of eight in 2013, and lays out the others in its press release HERE.

Wells Fargo will pay about $541 million, the bank announced, with the remainder a credit adjustment in the wake of repurchases of securities from the Federal National Mortgage Association that Wells Fargo already has made.
But Fannie Mae says that Wells Fargo is still on the hook "for certain other contractual responsibilities under the resolution agreement."
It's the second such settlement this year.  In September, Wells Fargo paid $869 million to settle on bad mortgages it sold to Freddie Mac, another government-dominated independent firm that buys mortgages from banks and it is regulated by the Federal Housing Finance Agency.

The bank's press announcement was posted this morning HERE.

QuidnuncRE looked at the most recent settlement by the Consumer Financial Protection Bureau against Ocwen Financial Corp. and summed up the others HERE.


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