Judge Kills Wells Fargo Mortgage-Referral Kickback Action

Law360, Los Angeles (June 20, 2013, 4:47 PM EDT) -- A Maryland federal judge on Thursday dismissed a class action accusing Wells Fargo Bank NA of a mortgage referral kickback scheme, saying the plaintiffs couldn't prove that charges for work performed qualify as illegal finder’s fees under Maryland state law.

Plaintiffs allege that Prosperity Mortgage Co. was a not actually an independent mortgage lender, but a front organization funneling mortgage referrals to the bank in exchange for kickbacks, forcing the consumers to pay higher interest rates and finder's fees than they would have had they gone...
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