So folks, the U.S. government is suing Wells Fargo Bank in New York, blaming the nation’s largest originator of home mortgages for thousands of loan defaults over the last decade. Check this out – Wells Fargo was pushing employees to and rewarding them to approve as many loans as possible regardless of financial soundness.
Also, just a reminder that Bank of America was aggressively employing the same tactics and BofA will pay $1 Billion to resolve allegations.
Now, would you be okay working with these institutions for any reason whatsoever? I guarantee they will continue to look for ways to essentially steal your money.
Below from NBC NewsWire Services:
A civil mortgage fraud lawsuit filed in U.S. District Court in Manhattan on Tuesday seeks to recover hundreds of millions of dollars that the Federal Housing Administration, which insured the loans, had to pay out after borrowers defaulted.
The lawsuit charges San Francisco-based Wells Fargo with falsely certifying that its loans met the standards necessary to be eligible for government insurance. U.S. Attorney Preet Bharara says the bank’s plan to reward employees for the number of loans they approved “was an accelerant to a fire already burning.”
Bharara’s office has brought similar cases in the past year, including one against Citigroup Inc unit CitiMortgage Inc, which settled the case for $158.3 million in February, and against Deutsche Bank, which paid $202.3 million in May to resolve its case.
The U.S. Attorney’s office in Brooklyn brought the biggest such case, against Bank of America Corp’s Countrywide unit, which agreed in February to pay $1 billion to resolve the allegations.
Wells Fargo & Co. has denied the allegations and is promising a vigorous defense.