Wells Fargo & Co. has settled a federal lawsuit over its mortgage sales for less than $1bn
Wells Fargo & Co. has settled a federal lawsuit over its mortgage sales for less than $1bn, according to the Charlotte Business Journal.
Several other major lenders were sued in 2011 by the Federal Housing Finance Agency, which alleged that the banks had fraudulently sold shoddy mortgages to Fannie Mae and Freddie Mac. Wells Fargo was the only major bank not sued in 2011 by the FHFA, according to the Journal.
The bank was able to settle quietly because it worked to reach a deal with the FHFA before the other suits were filed, according to the Journal. It was also one of the few big banks not accused of outright fraud. The exact terms of the settlement have not been disclosed.
Other banks haven’t been so lucky. Bank of America may be forced to settle with the FHFA for a figure as high as $6bn, according to some reports. JPMorgan Chase, meanwhile, is expected to pay $13bn to settle government claims against it.