December 30, 2013Fannie Mae Reaches $591 Million Repurchase Agreement with Wells Fargo
WASHINGTON, DC – Fannie Mae (FNMA/OTC) has reached a $591 million agreement with Wells Fargo to resolve repurchase requests on certain loans originated prior to 2009. After adjustments for prior repurchases, Wells Fargo will pay Fannie Mae $541 million in the fourth quarter of 2013 and be released from repurchase liability for these loans, with certain exceptions.
“We have closed out our legacy repurchase reviews with this agreement with Wells Fargo,” said Timothy J. Mayopoulos, President and CEO of Fannie Mae. “This agreement represents a fitting conclusion to our year of hard work to put legacy issues in the rear view mirror and begin 2014 focused on improving the future of housing finance.”
Wells Fargo will remain obligated for certain other contractual responsibilities under the resolution agreement.
In addition to its agreement with Wells Fargo, Fannie Mae has reached resolutions this year with a number of lenders on repurchase issues and other matters. These agreements have been reached with eligible lenders of all sizes, including:
Fannie Mae disclosed in its most recent 10-Q filing that as of September 30, 2013, it had completed reviews on approximately 94 percent of the loans delivered from 2005-2008 for underwriting defects that would trigger potential repurchase requests and that the company expects to complete those reviews by the end of 2013.