WASHINGTON (12/31/13)--Wells Fargo has agreed to pay $591 million to Fannie Mae to resolve "substantially all" repurchase liabilities related to mortgage loans sold on to Fannie Mae that were originated before Jan. 1, 2009, the government-sponsored enterprise (GSE) said.
"The $591 million agreement was adjusted for credits related to certain prior repurchases, resulting in a one-time cash payment to Fannie Mae of approximately $541 million," Fannie Mae added in a release. As of Sept. 30, 2013, Wells Fargo had set aside funds for the full cost of the agreement, the GSE added.
Fannie Mae President/CEO Timothy Mayopoulos said the agreement with Wells Fargo "represents a fitting conclusion to [Fannie Mae's] year of hard work to put legacy issues in the rear view mirror and begin 2014 focused on improving the future of housing finance." The GSE in 2013 also reached agreements to resolve mortgage issues with Bank of America, CitiMortgage, SunTrust, J.P. Morgan Chase, Flagstar, PNC and HSBC Bank USA, N.A. These agreements have brought in nearly $14 billion in funds, altogether.
The National Credit Union Administration has also taken action against Wall Street firms to regain credit union system losses brought by residential mortgage-backed securities of alleged questionable quality.
The NCUA will receive $1.4 billion under the terms of a $13 billion multi-agency settlement with JP Morgan Securities. In addition to JP Morgan, the NCUA has also filed lawsuits against RBS Securities, Wachovia Capital Markets and Wells Fargo, Barclay's Capital Inc., Goldman Sachs, and UBS Securities. The agency has also settled claims of more than $170 million with Citigroup, Deutsche Bank Securities and HSBC.