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The US government sues Wells Fargo for reckless lending practices

US sues Wells FargoThe US government has sued Wells Fargo for causing the taxpayers of this great country millions of dollars because of Wells Fargo's reckless lending practices. Under the FHA loan program, the federal government will insure loans for low income and first time borrowers that are originated by lenders, such as Wells Fargo. The US is accusing Wells Fargo of misrepresenting the quality of the loans that it wrote through the FHA program. As these loans starting going bad, the government, or more accurately, the US taxpayers, lost hundreds of millions of dollars. The Wall Street Journal reports that "The company said that more than 100,000 FHA loans met federal guidelines when more than half of them didn't, according to the complaint."

Preet Bharara, The US Attorney for the Southern District of New York issued a statement saying "As the complaint alleges, yet another major bank has engaged in a long-standing and reckless trifecta of deficient training, deficient underwriting and deficient disclosure, all while relying on the convenient backstop of government insurance." While I commend the steps taken by the government to recoup money for the taxpayers, I think its a shame that the government allowed the crises to get this far. Well Fargo received $25 BILLION in our money, but the government never obtained any written agreement with them to help homeowners. In fact, CBS reported in 2009 that the day Wells Fargo received that money, they bought Wachovia for over $12 BILLION. So our hard earned tax money went to Well Fargo to keep them afloat, then they took that money and bought another bank instead of using it to help the homeowners that bailed them out. Unbelievable.

Let's face it, banks such as Wells Fargo have sunk this country and then the come begging the taxpayers for a handout. After the get their money, they turn around and slap the taxpayers in the face by continuing their barrage of foreclosures instead of helping homeowners that are desperately trying to save their homes. Its a total disgrace.

At Loan Lawyers, we sue bank, including Wells Fargo, for violating homeowners' and debtors' right. The best part is that if our lawyers take your case and we sue Wells Fargo, we do so on a contingency fee basis, which means that you pay not attorneys fees or costs unless we recover money for you. Call us today for your free consultation with one of our attorneys in Miami-Dade, Broward, or Palm Beach county.