Photo: Yahoo Finance
The U.S. government has filed a civil suit for mortgage fraud against Wells Fargo.Charges of misconduct span more than a decade and stem from the bank’s participation in a Federal Housing Administration Program, according to a statement from the U.S. Attorney in Manhattan.
According to the complaint, the FHA paid millions on insurance claims for thousands of loans issued through a special lender program as a result of false certifications by the bank.
Wells Fargo denied the allegations and said in a statement that “it acted in good faith and in compliance” with FHA and Department of Housing and Urban Development rules.
The company’s stock price has dropped on initial news of the lawsuit, but has bounced back slightly since. Still, it’s down 1.45% as of 4:15 p.m. Tuesday.