Wells Fargo has agreed to pay $1.2 billion to put to rest claims that it engaged in reckless lending under a Federal Housing Administration program that left a government insurance fund to clean up the mess.
The bank, which is the nation’s largest mortgage lender, has been in talks with the government since 2012 over accusations that it improperly classified some F.H.A. loans as qualifying for federal insurance when they did not, and that it knew of the misclassification but failed to inform housing regulators about the deficiencies before filing insurance claims.
Financial Highlights (Wells Fargo Website)
$1.8 trillion in assets, 3rd largest in the United States
$1.4 trillion in retail brokerage client assets, 3rd largest U.S. retail brokerage firm
Net income $5.7 billion
Diluted EPS $1.03
Total revenue $21.6 billion
Pre-tax pre-provision profit $9.2 billion
Net interest margin 2.92%
Return on assets 1.27%
Return on equity 12.23%
Allowance for loan losses $11.5 billion