Wells Fargo to Pay $24M to End Mortgage Probe

By: AP
By: AP

Washington (AP) --

Wells Fargo has agreed to pay $24 million to end an investigation by eight states probing whether the company made risky mortgages to consumers without disclosing their perils.

The states charged that loans known as option adjustable rate
loans, or "pick-a-payment" mortgages, were deceptive to
borrowers. Those particularly toxic loans allowed borrowers to
defer some of their interest payments and add them to the principal

Wells Fargo & Co. says it reached an agreement with attorneys
general in Arizona, Colorado, Florida, Illinois, Nevada, New
Jersey, Texas and Washington state. The loans were made by Wachovia Corp. and a California company it acquired, World Savings Bank.

San Francisco-based Wells purchased Wachovia during the
financial crisis two years ago.

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  • by ? on Oct 6, 2010 at 10:36 PM
  • by SUNNYBEACHES on Oct 6, 2010 at 05:01 PM
    Excellent question, GOOD. As a previous mortgage holder and a new mortgage holder with Wells Fargo Bank, who will receive the payment other than the government...the homeowners, NOT!!!
  • by good on Oct 6, 2010 at 03:08 PM
    So who gets the money??
  • by SSgt. Barnes on Oct 6, 2010 at 01:22 PM
    This sounds like the paid of the gov't so we wouldn't see what they did? Am I wrong? Can we embargo Wells Fargo?
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