Wells Fargo &Â Co. announced a settlement for nearly $1 billion that will resolve repurchase demands on agency mortgages. The deal is just one of several reached this year by the nation’s largest residential lenders.
Wells Fargo Home Mortgage disclosed in a news release Monday that it reached a settlement with the Federal Home Loan Mortgage Corp.
The agreement, reached on Sept. 27, resolves substantially all repurchase liabilities on home loans that it sold to Freddie Mac prior to 2009.
Wells said the settlement cost it $869 million, all of which has already been accrued.
The cash portion of the settlement, after factoring in credits related to certain prior repurchases, was $780 million.
The San Francisco-based firm isn’t the first company to announce massive repurchase settlements and likely won’t be the last.
Last month, Citigroup Inc. disclosed a $395 million settlement with Freddie, while it reported in July a $968 million agreement to settle with Fannie Mae.
In May, Flagstar Bancorp Inc. announced it had reached a $110 million settlement with MBIA Insurance Corp. over repurchase demands on securitized loans from 2006 and 2007.
Bank of America Corp. reached a $3.55 billion agreement with Fannie in January to resolve repurchase claims on $1.4 trillion in loans.
