Wells Fargo to pay $2 billion penalty for alleged misrepresentation of loan quality
Source: CNBC
Wells Fargo will pay $2.09 billion in penalties for allegedly misrepresenting loan quality, according to the U.S. Attorney's office in California.
The bank will pay the civil penalty after allegedly originating and selling tens of thousands of residential mortgage loans it knew contained misstated income information and didn't meet the quality that Wells represented, causing mortgage-backed bond investors to lose billions of dollars. Wells is not admitting to liability.
"Abuses in the mortgage-backed securities industry led to a financial crisis that devastated millions of Americans," said Alex G. Tse, the acting U.S. Attorney for the Northern District of California, in a statement.
This story is developing. Please check back for updates.
Read more: https://www.cnbc.com/2018/08/01/wells-fargo-to-pay-2-billion-penalty-for-alleged-misrepresentation-of.html
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