Wells Fargo Slapped With $85M Fine for Lending Practices
Matt | On 21, Jul 2011
I had to post this one because I am a homeowner and know several others. Too many across the country have been dragged through the mud in the past 3-4 years.
Wells Fargo, the major financial institution, was hit with a whopping $85 million fine from the U.S. Treasury for corrupt lending practices and falsifying income information for clients seeking home loans. The bank is accused of directing people to subprime loans when they really qualified for lower rates. This caused more financial strain on the client and made more money for the bank.
Wells Fargo will not only have to pay that steep fine, but they also have to compensate anywhere from 3,700 to 10,000 homeowners for the trouble they caused. Not to worry, the bank got a $25 billion bailout from the U.S. government. They are good for it!
It’s about time that some of the players in the housing crisis began to pay for their illegal acts. The crisis is what really kicked off the Great Recession that we are still feeling the effects of. I still don’t think that homeowners have been properly compensated for all of the mortgage fraud, iffy accounting, and suspect home valuations that were going on.
I’m still waiting on the feds to get in the credit card industry’s ass a little more too! They aren’t innocent little sheep either.
(Thanks to Think Progress for the heads-up on the story!)