Wells Fargo reachs settlement after admitting deception over mortgages

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Wells Fargo admitted to deceiving the U.S. government into insuring thousands of risky mortgages, as it formally reached a record $1.2bn settlement of a U.S. Department of Justice lawsuit.

Reuters reports that the settlement with Wells Fargo was filed on Friday in Manhattan federal court. It also resolves claims against Kurt Lofrano, a former Wells Fargo vice president.

According to the settlement, Wells Fargo "admits, acknowledges, and accepts responsibility" for having from 2001 to 2008 falsely certified that many of its home loans qualified for Federal Housing Administration insurance.

The lender also admitted to having from 2002 to 2010 failed to file timely reports on several thousand loans that had material defects or were badly underwritten, a process that Lofrano was responsible for supervising.

To access the complete Reuters article hit the link below:

Wells Fargo admits deception in $1.2 billion U.S. mortgage accord

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