October 31, 2013 / 11:45 PM / in 5 years

Wells Fargo settles mortgage claims with U.S. government for under $1 billion: FT

(Reuters) - Wells Fargo & Co (WFC.N), the fourth-largest U.S. bank, has settled claims with a U.S. government agency over bad mortgages the bank sold ahead of the financial crisis, the Financial Times reported on Thursday.

The Wells Fargo bank branch is seen in Golden, Colorado October 11, 2013. REUTERS/Rick Wilking

The San Francisco bank paid less than $1 billion to resolve claims from the Federal Housing Finance Agency, the overseer of government-backed mortgage enterprises Fannie Mae and Freddie Mac, the newspaper said, citing people familiar with the matter.

A Wells Fargo spokesman and the government agency declined to comment. The settlement was governed by a confidentiality agreement, the Financial Times said.

The bank said in a securities filing in the first quarter of 2013 that it had settled certain mortgage-backed securities claims with Fannie Mae out of previously established reserves, though it did not specify additional terms of the settlement.

Reporting by Peter Rudegeair in New York; Editing by Lisa Shumaker

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