Wells Fargo Wants Mortgage Insurance Fraud Case Nixed

Law360, New York (November 16, 2012, 8:41 PM EST) -- Wells Fargo Bank NA asked a New York federal judge Friday to dismiss a U.S. Department of Justice suit accusing the bank of defrauding a federal mortgage insurance program, saying it has already paid $5 billion to settle the allegations in a separate Justice Department case.

The government sued Wells Fargo in New York federal court on Oct. 9, claiming that the country's largest mortgage originator defrauded the Federal Housing Finance Administration out of hundreds of millions of dollars by knowingly submitting nearly 6,600 mortgages with...
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