Wells Fargo to pay $335M to settle claims about risky securities
Wells Fargo will pay $335 million to resolve claims that it misled Fannie Mae and Freddie Mac about risky mortgage securities that it sold them prior to the housing collapse.
The San Francisco-based bank says in a regulatory filing Wednesday that it settled the claims with Fannie Mae in its first quarter and Freddie Mac in its third quarter. The settlements with the Federal Housing Finance Agency organizations totaled approximately $335 million.
Both Wells Fargo and the FHFA declined to comment further.
The FHFA sued 18 financial institutions in 2011 over their sales of mortgage securities to Fannie and Freddie. These types of securities soured after the housing bubble burst in 2007, losing billions in value.
JPMorgan Chase agreed in October to pay $5.1 billion to settle similar claims.