960-wells-fargo-litigation-charges-on-the-rise 2Wells Fargo: Litigation Charges on the Rise

 

This is a bidnessect.com article.

By Abdul Wasay

 

Recent settlements, massive layoffs in mortgage services, as well as MBA’s projections could negatively impact Wells Fargo’s mortgage business.

Wells Fargo & Co. (NYSE:WFC) has been in the news lately for legal settlements related to mortgage services. The company posted impressive fourth quarter earnings results, which were majorly driven by lowered expenses, but now faces troubles on the litigation expense front.

Last week, the bank paid more than a billion to settle two separate charges related to negligent practices and misleading customers. Wells Fargo was alleged to have been involved in incomplete disclosures of standards related to mortgages to customers from 2001 through 2010. It agreed to pay $1.2 billion against charges pressed by the Federal Housing Association (FHA) in 2012. As a consequence, the lending firm had to revise the net income reported for fiscal year ‘15.

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