The U.S Attorney for the Southern District of New York files a civil mortgage fraud lawsuit...


The U.S Attorney for the Southern District of New York files a civil mortgage fraud lawsuit against Wells Fargo (WFC -2%) for hundreds of millions of dollars over allegations of reckless underwriting and fraudulent loan certification by the bank. An investigation conducted with assistance from HUD found over 6K Wells Fargo mortgage loans with material violations.

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Comments (4)
  • Tony Petroski
    , contributor
    Comments (6356) | Send Message
     
    2002: "You bankers are discriminating against worthy borrowers. We'll fine you and prevent you from opening more branches."

     

    2012: "You bankers weren't discriminating enough. We'll fine you and prevent you from closing your branches."
    9 Oct 2012, 03:40 PM Reply Like
  • TomasViewPoint
    , contributor
    Comments (4911) | Send Message
     
    The lawsuit as shown on the DOJ site is a good read. WFC will be looking to settle on this one. And yes the mortgages originated between 2001 and 2005 which was the foaming at the mouth bubble years.

     

    Can we get the federal government out of the insurance business? A really good line is as follows.........."neither the FHA nor HUD reviews a loan before it is endorsed for FHA insurance." This is putting taxpayers at risk and as the real underwriter of these loans.

     

    I am also chuckling because this is Warren B's biggest bank investment. However this bank made $15 billion last year so they can handle this suit without a problem.

     

    WFC does 1 of 3 mortgages in the US right now.
    9 Oct 2012, 04:00 PM Reply Like
  • fourchan
    , contributor
    Comments (82) | Send Message
     
    i have the wells traing tapes from then. they paid the most back end and those tapes would convict anyone. for sale 50,000$
    9 Oct 2012, 08:46 PM Reply Like
  • Aristiphones
    , contributor
    Comments (1325) | Send Message
     
    wow...ya think?http://bit.ly/SQzEcx
    9 Oct 2012, 11:55 PM Reply Like
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