Wells Fargo sends refunds to some FHA mortgage customers
Thousands of Wells Fargo & Co. home loan customers recently received a surprise in the mail: refund checks from the big bank, along with letters saying they had paid unnecessary fees for their mortgages.
The unsolicited offers of thousands of dollars arrived with a catch — if the borrowers cash the checks, they can’t later sue the No. 1 U.S. home lender. The San Francisco bank said in the letters that borrowers were put into more expensive loans when they could have qualified for cheaper ones.
Analysts said the letters sent to potentially 10,000 Wells Fargo borrowers were a way for the bank to sidestep further litigation over “steering” customers into unfavorable loans — allegations that the government has made about certain Wells Fargo operations in the past.
It’s one in a long series of legal troubles for major mortgage lenders, the five largest of which agreed in February to a $25-billion settlement of accusations that they “robo-signed” foreclosure affidavits and otherwise abused distressed borrowers. Mortgage investors have barraged them with lawsuits over defaulted loans, and the government also recently filed separate complaints against banks including Wells Fargo, JPMorgan Chase & Co. and Bank of America Corp.
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You can change ugly but you can’t change stupid esp. in this economyStuck on stupid seems to be the new accepted norm and business model.Too bad we can’t teach common sense to people.
Because most people do not read what is attached to “money” most of them will cash the checks, especially in an economy that is struggling. Dangle a carrot in front of a horse and they will eat! And sadly, that’s exactly what the banks have been doing for decades. What’s a few million dollars to them when they have stolen trillions! My favorite line from a Hollywood movie “stupid is as stupid does”!