Wells Fargo was sued by U.S. attorney’s office in Manhattan.
FHA is saying that wells approved thousands of fraudulent loans that FHA had to cover since they insure the loans. FHA is a quasi-government arm and they got hammered because they had to cough up billions in insurance when the loans went bad.
To add insult to injury, Wells gave bonuses to lenders who approved the most loans. I know this is true because i know someone who worked as a senior loan officer for them and told me that the appraiser would call him and say, “what should I appraise the house for?”.
It’s about time the banks were held accountable for the housing disaster.
Do you agree?
In addition, the feds have arrested some local real estate brokers for a phoney loan mod program.