Wells Fargo Reaches $1.2B Settlement Over US Mortgage Scam
Wells Fargo, the nation's largest mortgage lender, has agreed to pay $1.2B to settle claims it engaged in mortgage insurance fraud through the FHA program. The deal was reached on Feb. 1, an SEC filing says.
The federal government sued Wells Fargo in October 2012, alleging the bank engaged in "reckless" underwriting of government-backed loans between 2001-2010.
The news is the latest in a round of big banks settling similar lawsuits over FHA-insured loans. The mortgages were issued between 2001-2010 under the FHA program, which has historically backed loans for first-time buyers and low-income individuals.