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Sat Oct 27, 2012, 12:53 AM

Wells Fargo sends refunds to some FHA mortgage customers... [View all]

Source: Los Angeles Times

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 sounds like they either found some problems themselves or the regulators discovered them and told them to get things fixed," said Paul J. Miller, an analyst who follows Wells Fargo for Friedman, Billings, Ramsey & Co.




Read more: http://www.latimes.com/business/realestate/la-fi-wells-fha-refunds-20121027,0,2097257.story

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