Wells Fargo Foreclosure Practices Lawsuit Not Barred by Earlier Deal, U.S. Says

Wells Fargo Lawsuit Not Barred by Earlier Deal, U.S. Says

Wells Fargo & Co. (WFC) can be sued in a federal lawsuit in New York over mortgage foreclosure practices without violating the terms of a settlement reached with the bank in another case, the Justice Department said.

The department, in a filing yesterday in federal court in Washington, said the bank’s allegation that the U.S. breached the terms of the $5 billion deal by suing in federal court in New York for hundreds of millions of dollars based on conduct that Wells Fargo is no longer liable for is “flatly inconsistent” with the terms of the settlement.

The New York case is premised on Wells Fargo, the biggest U.S. home lender, knowing that the origination of loans insured by the Federal Housing Administration didn’t meet agency requirements, resulting in “substantial losses” to the FHA insurance fund, according to the filing.

The settlement “only bars the government from asserting a very specific type of claim, i.e., where its ’sole basis’ is Wells Fargo’s submission of a false annual certification in connection with maintaining its status as an FHA-approved Direct Endorsement Lender,” John Warshawsky, a Justice Department lawyer, said in the filing.

Rest here…



4 Responses to “Wells Fargo Foreclosure Practices Lawsuit Not Barred by Earlier Deal, U.S. Says”
  1. Poof says:

    The Banksters are crying they are not being delt with fairly,go figure that one out !

  2. lies is all they tell says:

    please comment on contract law. thats fine about the mortgage following the note but what about when homeowners are told to break the contract by the servicer. why are the courts, the judges, not adjudicating contract law in foreclosure cases are they not civil law?
    when wells fargo the servicer tells the homeowner not to pay a current mortgage (as in miy case) because in order to “APPLY for A HAMP LOAN WE HAD TO BE # MONTHS BEHIND” which we know is now an utter lie. that is in all technical purposes telling the homeowner to break the said mortgage contract. why ar the judges being so wish washy on that concept. i feel as though i live in a tunnel. Judge tatti in hernando seems cool. he asserts the fact that he has been a procecuter for 22 years dealing with peoples lives. now he is faced with banks coming and taking peoples homes away. but then he still dismissed the case with prej. to me seems now the bank can come back and lie again. perjury again no one is prosecuting. i feel as though i am in a tunnel and cant see the light at the end.

  3. stripes says:

    These banks are hiding behind proxies like servicers and homeowners associations to steal properties they have no legal right. A family member of mine had his townhouse stolen from him by the HOA for WF without a foreclosure ever being filed. He was evicted and disgraced and he never had a day in court in a judicial state. Someone transferred his townhouse to a real estate agent on his public records and erased his name from the property records.

  4. TheHutMaster says:

    Sue these a$$hats for being Criminal SCUM. I deal with these criminals daily and would not let a dead cock roach do business with these liars and theives.

    Die Wels Fargo, DIE!

    “Fight the Good Fight”
    Every Minute, Every Day

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