Wells to lose $ 1.8B in interest after deal

San Francisco- based Wells Fargo might forgo up to $ 2 billion in lost interest as a result of its decision to refinance mortgages after a probe of the industry’s practices, the bank stated Tuesday in a regulatory filing.

The bank’s interest losses may range from $ 1.8 billion to $ 2 billion in future years, Wells stated in the filing with the Securities and Exchange Commission. That would amount to $ 181 million to $ 201 million a year.

The program is part of a $ 25 billion mortgage settlement with federal prosecutors that obliges Wells Fargo to reduce interest rates.

Up to 36,000 Wells Fargo borrowers may have their rates reduced, the SEC filing stated. Initially, Wells had estimated 40,000 borrowers might be covered and due for a refinance.