Wells Fargo to pay Fannie Mae $591 mln to settle mortgage claims

Mon Dec 30, 2013 9:05am EST

Dec 30 (Reuters) - Wells Fargo & Co, the fourth-largest U.S. bank by assets, said it would pay $591 million to Fannie Mae to substantially settle all repurchase liabilities related to loans sold to the government-controlled mortgage company before Jan. 1, 2009.

Fannie Mae will receive about $541 million in cash after adjusting for credits related to certain prior repurchases, the San Francisco-based bank said.

The cost of the agreement has been fully accrued for as of Sept. 30, Wells Fargo said.

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