Wednesday, November 21, 2012

Did Wells Fargo Routinely Overcharge Veterans Under a Federal Loan Refinancing Program?

Wells Fargo must face suit over veterans’ loans, judge says by David McLaughlin and David Beasley, Published: November 20 The Washington Post

[Excerpted] Nov. 20 (Bloomberg) -- Wells Fargo & Co., the biggest U.S. home lender, must face a lawsuit that accuses the bank of overcharging veterans under a federal loan-refinancing program, a judge ruled.

U.S. District Judge Amy Totenberg in Atlanta denied Wells Fargo’s bid to dismiss the complaint filed by two mortgage brokers, saying their allegations are “plausible and sufficient,” according to a decision filed yesterday.

The plaintiffs “have made factually specific allegations regarding mechanics of defendant’s routine practice of creating false documents and making false statements to the VA in order to obtain guarantees on loans,” Totenberg wrote....

...Five banks that were sued in the case “recently” agreed to settle claims, according to a statement yesterday by lawyers for the plaintiffs.

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