Wells Fargo confirms Freddie Mac settlement

Wells Fargo has confirmed it has reached an agreement with Freddie Mac over faulty loans that were sold to the company.

The largest mortgage lender in the US stated that it is going to pay Freddie Mac $869 million (£534 million), a figure that will settle claims on all loans sold before January 1st 2009.

Jane Fraser, chief executive of CitiMortgage, recently confirmed that the company is paying Freddie Mac £245 million in order to settle 3.7 million loans sold to the firm between 2000 and 2012.

Agencies Freddie Mac and Fannie Mae were both hit badly by the global financial downturn, but have received massive payments in recent months as a result of the faulty loans they were sold.

Tom Fitzgerald, spokesman for Freddie Mac, recently noted that the settlement agreed with Citigroup was an "equitable" one that allows both firms to move forward.

Ms Fraser also pointed out that the agreement is an "important milestone" for the two companies as they move on from the recession,

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