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Wells Fargo Seeks Suit Dismissal Based on Redundancy

Mortgage News > Wells Fargo Seeks Suit Dismissal Based on Redundancy
Date: 11/05/2012    Wells Fargo Seeks Suit Dismissal Based on Redundancy

Wells Fargo & Co. is once again facing federal charges as papers were filed in a Manhattan court last week.  Charges filed by the U.S. government state that the national home lender allegedly filed false claims on mortgages sold.

Fargo asserts the claim should be dismissed due to the fact the federal government is in breach of the agreement reached in a settlement from fraudulent mortgage case earlier this year involving four other major banks that amounted to nearly $25 billion between the five of them.

Within the settlement the federal government agreed not to move forward with fraudulent charges unless it could prove that the bank and its agents intentionally certified mortgages that failed to meet Federal Housing Administration (FHA) standards.

Wells Fargo calls the recent claims redundant and improper, but U.S. attorneys suggests in their claim that the bank knowingly certified roughly 6,300 mortgages fully aware they did not meet the necessary FHA standards.