Wells Fargo to pay $1.2 billion in FHA lending settlementStaff writer ▼ | February 3, 2016
Wells Fargo & Co will pay $1.2 billion to resolve some civil claims related to its Federal Housing Administration (FHA) lending program, primarily between 2001 and 2010.
Dispute The U.S. Department of Justice sued Wells Fargo in October 2012
The company, which reported 2015 results on Jan. 15, said it has provided for an additional legal accrual that added $200 million to its noninterest expense last year.
This reduced the company's 2015 net income by $134 million, or 3 cents per common share, to $22.9 billion, or $4.12 per common share, the company said.
The company said it had reached an agreement in principle on Feb. 1 with the Department of Justice, the U.S. Attorney's Office for the Southern District of New York, the U.S. Attorney's Office for the Northern District of California and the U.S. Department of Housing and Urban Development. ■