Wells Fargo Challenges Mortgage Case


NEW YORK (UPI) — U.S. bank Wells Fargo said it should be exempt from a federal case involving mortgage fraud due to its participation in a foreclosure case settlement.

Five banks, including Wells Fargo, agreed to a $25 billion payment to settle charges of depriving home owners of due process in their hiring of law firms termed “foreclosure mills,” when trying to rush through the huge number of foreclosures that resulted from the financial crisis of 2008 and the concurrent economic downturn.

Wells Fargo now says that settlement includes an agreement that the federal government not pursue charges on mortgage fraud unless it could prove the bank’s agents knowingly certified mortgages that did not meet Federal Housing Administration standards, The Washington Post reported.

In papers filed in court in Manhattan, Wells Fargo said the wording on the settlement was “clear and unambiguous.”

The bank is asking for compensation for the charges it considers repetitive and improper.

UPI - United Press International, Inc.

Since 1907, United Press International (UPI) has been a leading provider of critical information to media outlets, businesses, governments and researchers worldwide.

Join the Discussion

Comment Policy: We encourage an open discussion with a wide range of viewpoints, even extreme ones, but we will not tolerate racism, profanity or slanderous comments toward the author(s) or comment participants. Make your case passionately, but civilly. Please don't stoop to name calling. We use filters for spam protection. If your comment does not appear, it is likely because it violates the above policy or contains links or language typical of spam. We reserve the right to remove comments at our discretion.