Wells Fargo, Freddie Mac Strike $869M Deal Over Loan Claims

Law360, Los Angeles (September 30, 2013, 9:39 PM EDT) -- Wells Fargo & Co. has struck an $869 million settlement over claims pertaining to home loans the bank sold to the Federal Home Loan Mortgage Corp., Wells Fargo announced Monday.

The bank said the deal, which the parties reached Friday, resolves substantially all repurchase liabilities related to loans sold to Freddie Mac before Jan. 1, 2009, according to a statement issued Monday.

The deal was adjusted for credits involving prior repurchases, thus amounting to a cash payment of roughly $780 million to Freddie Mac. Wells Fargo...
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