wells fargoWells Fargo Admits Misconduct as Part of the $1.2B Accord

 

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Wells Fargo & Company (WFCAnalyst Report) admitted to malpractices as the company formally reached the $1.2 billion settlement with the U.S. government regarding the bank’s Federal Housing Administration (‘FHA’) lending program. The settlement was disclosed in February this year.

According to the latest release by the U.S. Department of Justice, Wells Fargo “admitted, acknowledged and accepted responsibility” to several things including wrongful certification to certain residential home mortgage loans as qualifying for FHA insurance in the period from May 2001 through Dec 2008. As a result, when some of these loans defaulted, the government had to pay the FHA insurance claims. Also, the San Francisco-based banking giant accepted that it did not disclose thousands of faulty mortgage loans to the Department of Housing and Urban Development (HUD).

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