Wells Fargo & Co. was sued by the U.S. government over claims the bank committed fraud by making reckless mortgage loans, according to a complaint filed in federal court.
The government seeks damages for alleged misconduct spanning more than a decade. The FHA has paid hundreds of millions of dollars in insurance claims on thousands of mortgages that defaulted in connection with the FHA’s Direct Endorsement Lender Program as a result of false certifications by Wells Fargo, according to the complaint. Wells Fargo denies the allegations.
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