HUSH MONEY – Wells Fargo pays $24M to End Mortgage Probe



“The agreement includes no admission of wrongdoing by Wells Fargo”


WASHINGTON — Wells Fargo is paying $24 million to end an investigation by eight states probing whether lenders acquired by the company made risky mortgages to consumers without disclosing their perils.

The states said loans known as option adjustable rate loans, or “pick-a-payment” mortgages, were deceptive to borrowers. Those particularly toxic loans allowed borrowers to defer some of their interest payments and add them to the principal balance. Borrowers could make payments so low that loan debt actually increased every month.

San Francisco-based Wells Fargo & Co. announced the agreement Wednesday with attorneys general in Arizona, Colorado, Florida, Illinois, Nevada, New Jersey, Texas and Washington state.

The loans were made by Wachovia Corp. and a California company it acquired, World Savings Bank. Wells purchased Wachovia at the end of 2008. Wachovia had already stopped making those loans before the acquisition was complete.

As part of the agreement, Wells has agreed to offer loan assistance worth more than $770 million to more than 8,700 borrowers through June 2013, though that amount will depend on how the economy fares during that time. The $24 million will be used to help states reach out to customers who took out such loans.

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5 Responses to “HUSH MONEY – Wells Fargo pays $24M to End Mortgage Probe”
  1. Kelly says:

    Amazing, read this in the paper I think on page 20, hmmm the mainstream media doesn’t seem to care. I am shocked that California is was not part of this settlement as it was targetted heavily.

  2. tony brown says:

    tell me what a home owner can do when the home owner has the original Note. The “wet ink” note endorsed in blank in possession. I need to talk with the Media I have already tried to convey the fraud with every gov. person I can. Local and federal including the FBI .

  3. Steve says:

    And the wronged homeowners will never see a penny of it! TREASON against We The People!!

  4. Michael says:

    On Sept 30, 2010, the US Treasury wrote them a check for $344 million (source: – HAMP tab.

    Mighty generous of them to kick $24 million, just under 7%, back.

  5. Elyse says:

    There going to assist 8,700 borrowers???? Are they kidding??
    There are 62 million homeowners at risk!
    I certainly would find it hard to believe that 24 million dollars is anywhere enough
    to stop this current investigation with the robo signers!!

    Who’s allowing this type of negiciations to even be taking place? They are criminal and the crimianls are offering the Attorney Generals money to NOT CONTINUE???? Who are these guys???

    Stop The Insanity!

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