One of the government sponsored
enterprises (GSEs) has reached what it says will be the last settlement of a repurchase
request related to loans it purchased before being placed in government
conservatorship. Fannie Mae announced
today it will accept $591 million from Wells Fargo in return for releasing the
bank, with certain exceptions, from repurchase liability for loans purchased
prior to 2009. Wells Fargo will remain obligated for certain other
contractual responsibilities under the resolution agreement.
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."
marks the eighth repurchase agreement reached between Fannie Mae and lenders
regarding repurchase issues and other matters.
Since January the GSE has negotiated the following repurchase
million; J.P. Morgan Chase;
billion from Bank of American including $1.3 billion in compensatory fees for
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.