Wow, Wells Fargo is guilty of pushing well qualified home owners into subprime loans and ripping them off.
Wells Fargo Financial, the lender’s consumer- finance unit, pushed customers who may have been eligible for prime interest rates into loans carrying higher rates intended for riskier borrowers, the Fed said today in a statement announcing the settlement. Separately, sales personnel used false documents to make it appear borrowers qualified for loans when their incomes made them ineligible.
The Financial unit was of course shut down when their evil doings started to be exposed. Who is taking the rap? Not Wells Fargo executives, nope, 16 of the fired employees will be banned from the banking business. The guy who oversaw this operation, Mark Oman? He gets to retire.
This measly $75 million dollar fine is being touted as a record. Worse, harmed homeowners might have to be compensated up to $10,000! Wow! $10k when you've lost your home, awesome! That might pay for the moving van.
Credit slips is warning victims to watch out for settlement papers, getting them to sign their right to sue away for the paltry sum of $7000.
As far as I could tell the agreement does not provide for consumers to release claims in exchange for these paltry sums, but advocates would be well advised to review settlement notices with affected consumers carefully.
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