Judge rules for Wells Fargo in NY challenge over mortgage settlement

WASHINGTON (Reuters) - A U.S. judge on Monday rejected allegations by the New York state attorney general that Wells Fargo was not complying with the $25 billion mortgage settlement that federal and state authorities reached with five banks in 2012.

U.S. District Judge Rosemary Collyer described Attorney General Eric Schneiderman's allegations as "so insubstantial" that the state failed to alleged a breach of the agreement.

In 2013, Schneiderman accused Wells Fargo of failing to comply with several mortgage servicing standards as prescribed by the earlier settlement.

(Reporting by Aruna Viswanatha; Editing by Peter Cooney)