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Wells Fargo to pay $2.1 billion for role in housing bubble
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Wells Fargo agreed Wednesday to pay a $2.1 billion fine to settle allegations it misrepresented the types of mortgages it sold to investors during the housing bubble and subsequent financial crisis. The amount is relatively smaller than the fines paid by Bank of America, Citigroup, Goldman Sachs and other big banks in the years following the financial crisis to settle similar allegations. Wells Fargo is one of the last remaining big banks to settle charges related to its role in the subprime mortgage crisis. (Baltimore Sun)
 
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Wells Fargo says mistake contributed to hundreds of foreclosures
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Wells Fargo says a company mistake contributed to hundreds of foreclosures because it miscalculated customers’ eligibility for mortgage modifications. The bank said in a filing Friday the error caused about 625 customers to be denied, or not offered, loan modifications they otherwise qualified for. Foreclosures were completed in about 400 of the cases. The customers had been using federal programs that helped families at risk of losing homes. Spokesman Tom Goyda says there’s no breakdown of where the foreclosures occurred. (CBS Denver)
 
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