Wells Fargo Exits Mortgage Loan Fee Case For $7M

Law360, New York (June 25, 2012, 6:46 PM EDT) -- Wells Fargo Bank NA has agreed to settle for $7 million a proposed class action alleging a predatory lending scheme that involved charging “bogus and illegal” fees on high-cost mortgage loans, according to a motion filed in Missouri federal court Monday.

In connection with the agreement, each member of the proposed class, which includes customers who borrowed second mortgage loans originated by Southstar Funding LLC and serviced by Wells Fargo, will receive about $5,940 per loan.

About $4.4 million in settlement funds will go toward reimbursing...
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