Wells Fargo Puts Up $13M To End Reinsurance Kickback Suit

Law360, New York (February 8, 2013, 3:55 PM EST) -- Wells Fargo & Co. will pay nearly $13 million to put to rest a class action accusing it of receiving illegal kickbacks from its mortgage reinsurer, according to a deal signed off on by a Pennsylvania judge Friday.

The deal, which will amount to gross payments of $173 to each of the nearly 74,000 class members, resolves allegations that Wells Fargo accepted kickbacks from reinsurer North Star Mortgage Guaranty Reinsurance Co. in violation of the Real Estate Settlement Procedures Act of 1974.

“The continued prosecution of...
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