In an agreement with the Fed, Wells Fargo has agreed to pay an $85 million dollar fine for predatory lending practices that happened from 2004 to 2008. The Fed claims that Wells Fargo employees steered loan applicants with prime credit into subprime loans. These subprime loans gave borrowers higher rates, elevated fees, and one-sided loan terms. Additionally, the Fed claims that Wells Fargo doctored loan applications in order to qualify applicants for loans that they could not have afforded otherwise.
While it comes as no surprise that Wells Fargo doctored loan applications, I find it interesting that this is the first case where the fed has fined a bank for predatory lending during the last decade. Wells Fargo claims that these loan violations were the result of a few rogue employees and not the result of management. Wells Fargo may publicly state they did not have a policy of steering clients into these loans, an agreement to pay an $85 million dollar fine indicates some institutional culpability.
If you believe you mortgage loan application was changed without your consent or that you were qualified for a loan with excess fees or high interest rates, call the Riverside Attorneys at De Novo Law Firm.