Wells Fargo Agrees to Pay $1.2 Billion to Settle FHA Claims

Feb. 3, 2016, 10:12 PM UTC

Wells Fargo & Co., the largest U.S. home lender, agreed to pay $1.2 billion to resolve claims related to its Federal Housing Administration mortgage practices.

The agreement includes loans made under the program from 2001 to 2010, the San Francisco-based bank said Feb. 3 in a filing. Because Wells Fargo had to add to legal costs, the firm lowered its 2015 earnings by $134 million, or 3 cents a share, according to the filing. The firm said in January that they earned $23 billion, or $4.15 a share, in 2015.

Wells Fargo was one of five banks that agreed in ...

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