Fremont General, Wells Fargo Reach $7M Settlement

Law360, New York (February 11, 2010, 3:21 PM EST) -- Bankrupt mortgage lender Fremont General Corp. and Wells Fargo & Co. have reached a nearly $7 million settlement in repurchase disputes stemming from the bank's role as trustee to several of Fremont's mortgage securitization transactions.

Fremont General filed a motion Tuesday seeking approval of the settlement from Judge Erithe A. Smith of the U.S. Bankruptcy Court for the Central District of California, noting that Wells Fargo has asserted repurchase claims of $79.9 million against Fremont General and its nondebtor subsidiary Fremont Reorganizing Corp.

After Fremont General...
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