untanglingwebs
El Supremo
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Mortgage fraud and predatory lenders are beginning to be fined. But that can not make up for the financial cost to the nation and the damages incurreed. Why were these fraudulent practices allowed to proliferate for so long. I talked to Real Estate people years ago who said they avoided these fraudulent mortgages.
BofA Says It May Face `Material Fines' in Foreclosure Probes
By Hugh Son - Feb 25, 2011 5:45 PM ET inShare5More
Business Exchange Buzz up! Digg Print Email Bank of America Corp., the largest U.S. lender, may face “material fines” from state and federal probes into possible irregularities in its foreclosure processes, the company said today.
The investigations “could result in material fines, penalties, equitable remedies (including requiring default- servicing or other process changes), or other enforcement actions, and result in significant legal costs,” the Charlotte, North Carolina-based lender said today in its annual report to the Securities and Exchange Commission.
U.S. regulators may try to extract $20 billion of penalties in a settlement with banks that serviced flawed loans, two people briefed on the talks said this week. Terms of an accord, from the Treasury Department and Department of Housing and Urban Development, haven’t been formally presented to banks, according to the people, who spoke on condition of anonymity because the discussions aren’t public.
“The current environment of heightened regulatory scrutiny has the potential to subject the corporation to inquiries or investigations that could significantly adversely affect its reputation,” Bank of America said.
To contact the reporter on this story: Hugh Son in New York at hson1@bloomberg.net
To contact the editor responsible for this story: Dan Kraut at dkraut2@bloomberg.net
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Wells Fargo Says Mortgage Probes May Spur Enforcement, Fines Against Bank
By Dakin Campbell - Feb 25, 2011 6:33 PM ET inShare5More
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A demonstrator holds a sign outside the Wells Fargo annual shareholders meeting in San Francisco. Photographer: David Paul Morris/Bloomberg
Wells Fargo & Co.’s lending and foreclosure practices probably will draw an enforcement action that may include a fine, the bank said today in a regulatory filing.
“It is likely that one or more of the government agencies will initiate some type of enforcement action against Wells Fargo, which may include civil money penalties,” the San Francisco-based lender said in its annual report. “Wells Fargo continues to provide information requested by the various agencies.”
Wells Fargo said the high end of estimated litigation losses could be $1.2 billion beyond the reserve already set aside, according to the filing. The bank, which ranks as the biggest U.S. mortgage lender, said it didn’t expect litigation costs to have a “material adverse” impact on its financial position.
Wells Fargo completed its own review of foreclosures in the fourth quarter and doesn’t believe any unwarranted seizures occurred, according to the filing.
U.S. regulators may try to extract $20 billion of penalties in a settlement with banks that serviced flawed loans, two people briefed on the talks said this week. Terms of an accord, from regulators led by the Treasury Department and Department of Housing and Urban Development, haven’t been formally presented to banks, according to the people, who spoke on condition of anonymity because the discussions aren’t public.
Wells Fargo rose 96 cents, or 3.1 percent, to $32.40 at 4 p.m. in New York Stock Exchange composite trading. The shares have gained 4.6 percent this year.
To contact the reporter on this story: Dakin Campbell in New York at dcampbell27@bloomberg.net
To contact the editor responsible for this story: Rick Green at rgreen18@bloomberg.net
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