US Hits Wells Fargo With FHA Mortgage Insurance Fraud Claims

Law360, New York (October 9, 2012, 4:57 PM EDT) -- The federal government sued Wells Fargo & Co. on Tuesday, alleging the country's largest mortgage originator defrauded a federal mortgage insurance program out of hundreds of millions of dollars by knowingly submitting mortgages with a high risk of default for more than 10 years.

In a suit filed in New York federal court, U.S. Attorney for the Southern District of New York Preet Bharara and the U.S. Department of Housing and Urban Development claim Wells Fargo submitted nearly 6,600 mortgages to the Federal Housing Finance Administration's...
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