Wells Fargo Announces $1.2B Settlement of Federal Charges – NMP Skip to main content

Wells Fargo Announces $1.2B Settlement of Federal Charges

Phil Hall
Feb 03, 2016

Wells Fargo & Co. has agreed to a $1.2 billion settlement that resolves federal charges of “reckless origination and underwriting” of government-backed mortgages.

According to a Dow Jones report, the federal government sued the San Francisco-based lender in 2012 for violating the Federal False Claims Act by improperly certifying Federal Housing Administration (FHA)-backed mortgages for insurance from the U.S. Department of Housing & Urban Development (HUD). Although Wells Fargo initially stated it would fight the charges in court, an unsuccessful effort to settle the case was made in 2014.

Wells Fargo stated that the settlement has yet to be finalized, and there is no mention of this on either the HUD or Department of Justice Web sites. Wells Fargo announcement did not include any acknowledgment of wrongdoing.

If this agreement is finalized before Friday, this will be the second settlement this week between HUD and a major lender. On Monday, HUD announced a $1.9 million settlement with Memphis-based First Tennessee Bank over charges of redlining against African-American and Hispanic mortgage applicants.

Feb 03, 2016
CFPB Seeks Insight On Creating A Fairer Mortgage Market

The Consumer Financial Protection Bureau has been actively looking to create a fairer mortgage market, free of discriminatory engagements. To do so, it issued a Request for Information to seek input on rules implementing the Home Mortgage Disclosure Act.

Regulation and Compliance
Nov 17, 2021
Regulators Renew Effort to Protect Against Foreclosures

CFPB, The Fed, FDIC and other agencies will watch for compliance with COVID-19 protections

Regulation and Compliance
Nov 10, 2021
Fed To Begin Tapering Asset Purchases by 14.3% This Month

Also sets target range for the federal funds rate at 0 to 1/4%.

Regulation and Compliance
Nov 03, 2021
CFPB Cracks Down On Discriminatory Credit Reporting For Black And Hispanic Consumers

Consumers in majority Black and Hispanic neighborhoods are far more likely to have disputes appear on their credit reports. 

Regulation and Compliance
Nov 03, 2021
CFPB Names 2 New Assistant Directors

Former Obama Administration officials will lead Supervision Policy, Enforcement divisions.

Regulation and Compliance
Oct 29, 2021
FHFA Proposes Extra Disclosure Rules For Fannie, Freddie

The proposed rule for the Enterprise Regulatory Capital Framework seeks to put Enterprises on a "level playing field" with U.S. banking requirements.

Regulation and Compliance
Oct 28, 2021