Wells Fargo in settlement talks over faulty mortgages insured by FHA

According to a regulatory filing today, Wells Fargo is in settlement talks with Uncle Sam over claims that the bank knowingly wrote faulty mortgages insured by the Federal Housing Administration. A case filed in Federal Court in 2012 alleges that Wells Fargo improperly certified FHA mortgage loans for the United States Department of Housing and Urban Development (HUD) insurance that did not qualify for the program. As such Wells Fargo should not have received insurance proceeds from HUD when some loans late defaulted. Discussions are ensuing about a possible resolution of the case for payment of yet unknown sums to the Government.

Jeffrey Newman represents whistleblowers.