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Wells Fargo Said to Settle Loan Probe for $125 Million

Wells Fargo & Co. (WFC), the largest U.S. mortgage lender, will pay $125 million to settle federal claims it violated fair-lending laws, according to a person with direct knowledge of the agreement.

The case relates to independent mortgage brokers who worked with the bank, said a person with knowledge of the inquiry who requested anonymity because the accord hasn’t been made public. The deal may be announced as early as today.

Mary Eshet, a spokeswoman for the San Francisco-based lender, and Mitchell Rivard, a Justice Department spokesman, declined to comment.

To contact the reporter on this story: David Scheer in New York at dscheer@bloomberg.net

To contact the editor responsible for this story: David Scheer at dscheer@bloomberg.net

Enlarge image Wells Fargo to Exit Wholesale Channel

Wells Fargo to Exit Wholesale Channel

Wells Fargo to Exit Wholesale Channel

Scott Eells/Bloomberg

Wells Fargo & Co. signage is displayed outside of a bank branch in New York.

Wells Fargo & Co. signage is displayed outside of a bank branch in New York. Photographer: Scott Eells/Bloomberg

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