Wednesday, 10 October 2012 05:54
'Tuesday’s civil lawsuit is a latest in a series of legal actions Washington has planned to take against big banks and other financial institutions for their improper lending during the housing boom that caused the housing market collapse in 2008.
The lawsuit, the US Attorney in Manhattan and the US Department of Housing and Urban Development (HUD), seeks damages and civil penalties for misconduct related to government-insured Federal Housing Administration (FHA) loans of hundreds of millions of dollars over more than a decade.
The lawsuit, the US Attorney in Manhattan and the US Department of Housing and Urban Development (HUD), seeks damages and civil penalties for misconduct related to government-insured Federal Housing Administration (FHA) loans of hundreds of millions of dollars over more than a decade.
The complaint alleges that Wells Fargo, the fourth-biggest US bank, issued false certifications on thousands of defaulted home mortgages and the FHA had to pay “hundreds of millions of dollars” on these claims.'
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