The Story Behind The Largest FHA Settlement In History
In February, Wells Fargo agreed to settle with the government for $1.2B, in what is the largest FHA settlement in history.
In recent months, many big banks have been held accountable for what they did during the crisis: issuing bad loans between 2001 and 2010 that ultimately cost the economy big.
"It is not acceptable that many young people have criminal records for smoking marijuana," presidential hopeful Bernie Sanders said recently, "while the CEOs of banks whose illegal behavior helped destroy our economy do not."
According to the charges, Wells Fargo admitted to falsely certifying mortgages were eligible for FHA insurance—when in reality they weren't, Housing Wire reports.
Wells Fargo’s lie ended up costing the government big money when it had to pay out the FHA insurance claims on those loans that defaulted, ultimately leading to the biggest settlement ever. [HousingWire]
