Wells Fargo Escapes Suit Over Securitization Scheme

Law360, Los Angeles (May 9, 2013, 7:25 PM EDT) -- Citing a lack of jurisdiction, a California federal judge on Thursday tossed a lawsuit brought by 82 homeowners who accused Wells Fargo Bank NA of perpetuating a “securitization scheme," drastically increasing the amount of subprime loans originated and sold as residential mortgage-backed securities.

The plaintiffs, who entered into mortgage loans that were at one point serviced by Wells Fargo or affiliated companies, said that Wells Fargo converted much of its business from that of a traditional lender to a “loan to securitize” lender between 2003 and...
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