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DU Home » Latest Threads » Forums & Groups » Main » Latest Breaking News (Forum) » Wells Fargo sends refunds... » Reply #7

Response to BadgerKid (Reply #4)

Sat Oct 27, 2012, 12:47 PM

7. Here's the why behind the suit conditions:

That huge $25 billion settlement with the big Banks that the gov announced?
did not disclose that for every dollar the banks "gave back" to the homeowner,
via refunds or via mortgage debt forgiveness,
the gov. would deduct that from the fine that the banks owed.

So, what happened was, Citi was in the news for sending "mortgage loan forgiveness" letters to homeowners who had already been foreclosed on, who did not own the home anymore.
Worse yet, they sent a copy of the letter to the IRS, which considers "loan forgiveness" as income to the homeowner.

Now it sounds as if Wells Fargo is trying to lower its fine amount via letters promising, but not delivering, money to home owners.

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