Wells Fargo to Pay $1.2 Billion for Bad FHA Loans
Prosecutors claim that Wells Fargo bank “engaged in a regular practice of reckless origination and underwriting” of FHA loans, which are backed by federal insurance and aim to help first-time home buyers according to the LA Times.
The bank has agreed to pay $1.2 billion dollar to the FHA for what government stated was reckless behavior that led to loans that did not meet guidelines and the subsequent attempt to cover up the bad loans.
As we all know, the bad loans have resulted in a lot of pain for many families as the foreclosure crisis hit. The crisis no longer national news,but as a foreclosure lawyer and bankruptcy lawyer in Maryland, I help many homeowners obtain modifications or file chapter 13 bankruptcy to save their homes.
The impact of these bad loans is still been felt by homeowners across the country. Hopefully, some of the funds will go towards making more affordable loans for low income borrowers and preventing the next crisis.
If you have questions about your mortgage or are facing foreclosure I may be able to help you. Call me at 410-849-9529.