Wells Fargo Adds $669 Million to Buy Back Bad Home Loans
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Wells Fargo & Co., the biggest U.S. home lender, braced itself for more demands for refunds of faulty mortgages by adding the most to a reserve fund covering such claims since at least 2009.
The bank cited stepped-up scrutiny by government-backed buyers such as Fannie Mae and Freddie Mac as it set aside $669 million in the second quarter, San Francisco-based Wells Fargo said in a statement. The lender said it expects more demands for refunds on loans sold to the two firms from 2006 through 2008.