The borrowers were not returned the amount they were entitled to. (Read more: Wells Fargo Faces Another Probe over Auto Insurance Business ) Recently, Wells Fargo announced that it entered into an agreement with the U.S. government to pay $108 million for a lawsuit settlement. Filed in 2006, the lawsuit claimed that some Veterans Administration (VA) Interest Rate Reduction Refinance Loans (IRRRLs) originated by Wells Fargo should not have been eligible for VA guarantees on account of the fees charged to the borrowers. However, the bank had denied all allegations.