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Wells Fargo & Co. settled with the U.S. government for $1.2 billion on Wednesday to resolve a 2012 suit accusing the mortgage lender of a "regular practice of reckless origination and underwriting."

The action was brought under the Federal False Claims Act and specifically accused Wells Fargo of improperly certifying Federal Housing Administration mortgage loans for Department of Housing and Urban Development insurance when the loans did not qualify. The Wall Street Journal reports that this is the third-largest fine Wells Fargo has agreed to. It also paid $5.3 billion in the joint state-federal National Mortgage Servicing Settlement with the federal government and 49 states attorneys in 2012 and $1.95 billion in a settlement with the Federal Reserve and the Office of the Comptroller of the Currency over foreclosures in 2013.

In December 2014, NCUA filed a lawsuit against Wells Fargo Bank National Association, alleging that the bank failed to follow through on its legal duty as a trustee for 27 residential mortgage-backed securities trusts. NCUA settled with Wells Fargo in October for $53 million.