Wells Fargo to Pay $1.2B Federal Mortgage Settlement
Wells Fargo has agreed to a $1.2 billion settlement to resolve a long-running mortgage dispute with the U.S. government, a move that slashes the bank’s 2015 profit by $134 million, reports The Charlotte News & Observer.
“The deal involves civil fraud claims brought in 2012 against the San Francisco-based bank, which the government had accused of ‘reckless’ underwriting practices that led to thousands of federally-insured loans defaulting,” according to the report. “The government said Wells Fargo’s false certifications that the loans met requirements for federal insurance resulted in hundreds of millions of dollars in insurance payouts.”
