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Wells Fargo to Pay $1.2 Billion for ‘Reckless’ Lending Practices

Jaclyn Jaeger | February 3, 2016

Wells Fargo & Company said this week in a securities filing that it would pay $1.2 billion to resolve certain civil claims relating to the company’s Federal Housing Administration lending activities.

The Department of Justice filed a civil fraud lawsuit against Wells Fargo in October 2012 in the U.S. District Court for the Southern District of New York to recover civil penalties under the False Claims Act, the Financial Institutions Reform, Recovery, and Enforcement Act, as well as common law damages arising from fraud practices with the Department of Housing and Urban Development (HUD) in connection with Wells Fargo’s mortgage lending business. According to the Justice Department’s complaint, Wells Fargo “engaged in a regular practice...

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