Wells Says False Claims Act Case Violates Servicing Settlement
November 12, 2012
Wells Fargo is contesting a complaint filed by the federal government that alleges the bank falsely certified loans under the FHAs Direct Endorsement Lender Program in violation of the False Claims Act and the Financial Institutions Reform, Recovery, and Enforcement Act. The Department of Justice and the Department of Housing and Urban Development are asserting that from May 2001 through October 2005, Wells regularly and knowingly participated in the reckless origination and underwriting of FHA loans...