Wells Fargo agrees to pay $1.2B to settle FHA claims

Wells Fargo & Co., the largest U.S. home lender, agreed to pay $1.2 billion to resolve claims related to its Federal Housing Administration mortgage practices.

The agreement includes loans made under the program from 2001 to 2010, the San Francisco-based bank said Wednesday in a filing. Because Wells Fargo had to add to legal costs, the firm lowered its 2015 earnings by $134 million, or 3 cents a share, to according to the filing. The firm said in January that they earned $23 billion, or $4.15 a share, last year.