Fannie caps off year with another huge settlement

by Adam Smith31 Dec 2013
One of the nation's largest lenders has reached a settlement with Fannie Mae to the tune of $591m.

Wells Fargo has agreed to pay Fannie Mae $591m over repurchase demands on loans originated before 2009 and sole to the GSE.

The settlement follows Wells' September settlement with Freddie Mac, which saw it shell out $869m.

The settlement also caps off a year in which Fannie Mae reached resolutions with a number of other large banks on repurchase issues, including:
 
  • A $10.3 billion agreement announced in January 2013 with Bank of America including resolution of repurchase issues on certain loans, transfer of servicing rights on 941,000 loans, and repurchase of 30,000 loans by Bank of America. Additionally, the agreement included a $1.3 billion compensatory fee payment for servicing obligations.
  • A $968 million agreement announced in July 2013 with CitiMortgage to resolve repurchase issues on certain loans.
  • A $373 million agreement announced in October 2013 with SunTrust to resolve repurchase issues on certain loans.
  • A $670 million agreement announced in October 2013 with J.P. Morgan Chase to resolve repurchase issues on certain loans.
  • A $121.5 million agreement announced in November 2013 with Flagstar to resolve repurchase issues on certain loans.
  • A $140 million agreement with PNC reached in December 2013 to resolve repurchase issues on certain loans.
  • An $83 million agreement with HSBC Bank USA, N.A. reached in December 2013 to resolve repurchase issues on certain loans.
“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,” Fannie Mae president and CEO Timothy J. Mayopoulos said.

 

 

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