Wells Fargo says it may face fair lending claims

[Amerigo Vespucci]

Source: Reuters

(Reuters) - The Department of Justice believes it has grounds to bring claims against Wells Fargo & Co (WFC.N) for monetary damages and civil penalties under fair lending laws, the bank said in a securities filing on Tuesday.

The fourth-largest U.S. bank said it believes such claims should not be brought and it is seeking to show the department that it is in compliance with fair lending laws, the filing said. The investigation involves possible violations related to mortgage origination practices, the filing said.

San Francisco-based Wells Fargo is the largest servicer and originator of home loans in the United States.

Government agencies also continue to investigate whether Wells Fargo properly disclosed risks related to mortgage-backed securities in offering documents for investors, according to the filing. In February, Wells said it had received notice that it may face an enforcement action from the Securities and Exchange Commission.

Read more: http://www.reuters.com/article/2012/05/08/us-wellsfargo-justice-idUSBRE8470OM20120508

[goclark]

1. Interesting

What about Bank of America?

[crazylikafox]

2. It would be nice to see some criminal penalties for a change.

past time for some banksters to go to jail. Civil penalties will just be added to their cost of business & passed on to the customer.

[Amerigo Vespucci]

4. Yep...start the countdown to "new ATM fees."

The only real damage here is to Wells Fargo's public image, but when you factor in the millions they spend on marketing, this too shall pass.

[bayareaboy]

3. Can I be the first to say ...

No shit Sherlock!

My guess is Wells Fargo is playing counter to the justice dept to let folks know that mean Obama and Holder want a hunk out of their ass. I am sure that BofA will be right behind.

It's too bad that Wells didn't move to North Catonic a few years ago like BofA did. I hate to see bad things said about San Francisco.

[slackmaster]

5. Good.

[The Magistrate]

6. A Damned Poor Substitute, Sir, For Criminal Charges Pressed As Ruthlessly As They Press Evictions

In a well-run polity, most of this company's executives would be doing twenty-to-life, and fines equal to its last ten years' stated profits paid in to the national Treasury.

[qb]

7. WF must be in panic mode.

They're jacking checking account fees and credit card interest rates WAY up - even for a customer of 20 years! My partner finally dumped them for a credit union.

[midnight]

8. People who were suppose to receive modified mortgages were defrauded again.

I would say that is unfair, but what well be done about it? They create jobs, and the job creators are to important to prosecute for fraud.