Wells Fargo Hit With $85M Subprime Steering Penalty

Law360, New York (July 20, 2011, 7:18 PM EDT) -- Wells Fargo & Co. on Wednesday agreed to pay the Federal Reserve Board $85 million to resolve claims that members of a shuttered subsidiary pushed customers into costlier subprime mortgages and falsified income information in mortgage applications.

The banking regulator alleged that between January 2004 and September 2008, Wells Fargo Financial Inc., a now-defunct unit of the San Francisco-based bank, pushed borrowers that were eligible for lower interest prime mortgages into subprime loans at higher interest rates. The Fed also alleged Wells Fargo Financial employees pumped...
To view the full article, register now.