Wells Fargo hit with latest FHA suit - | WBTV Charlotte

Wells Fargo hit with latest FHA suit

CHARLOTTE, NC (WBTV) - It's just the latest lawsuit on behalf of the Federal Housing Administration, which says it paid out millions for claims on homes it never should have touched.

The defendant this time, though, is surprising some on Wall Street.

Wells Fargo really kept a pretty low profile during all the housing trouble.

It's been sued far less than, say, Bank of America.

But now the U.S. government is saying Wells wronged the FHA too.

It is accusing the bank of fraudulently approving government-backed mortgages, and then gobbling up the government-issued insurance when those troubled-from-the-get-go loans defaulted.

But when the mortgage meltdown hit in 2008, Wells was revealed as one of the few banks practicing conservative lending policies.  And the San Francisco-based bank is reminding people of that as it adamantly denies the charges.

 

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