Morning Briefing: Wells Fargo to pay $1.2 billion for hiding bad loans

Wells Fargo to pay $1.2 billion for hiding bad loans
Wells Fargo will pay the US government $1.2 billion for hiding bad loans ahead of the housing market crash. The mortgage lender’s certification of thousands of loans which were given FHA insurance led to taxpayers footing the bill when the loans were defaulted.

A statement from Manhattan U.S. Attorney Preet Bharara said: "Wells Fargo enjoyed huge profits from its FHA loan business, the government was left holding the bag when the bad loans went bust. Wells Fargo, one of the biggest mortgage lenders in the world, has been held responsible for years of reckless underwriting."

No criminal charges have resulted from the investigation and Wells Fargo says the settlement, approved by a federal judge Friday, ends the legal process.

Similar settlements have already been reached between the government and Goldman Sachs, Morgan Stanley and JP Morgan Chase.
 
Give homeowners a break says NY attorney general
The New York attorney general says that the federal government should offer mortgage relief to homeowners at risk of foreclosure. Eric Schneiderman has written to the chairman of the FHFA calling for swift action to help those who are struggling including nearly 60,000 in New York with delinquent loans. The attorney general’s plan is for the finance agency to introduce “principal reduction plans” on government-backed loans. 
 
Search is on for top Latino mortgage, real estate producers
The best-performing real estate agents and mortgage originators from the Latino community will be recognized by the National Association of Hispanic Real Estate Professionals in the fall and the deadline for nominations is approaching fast.

The annual celebration of the industry’s star performers includes the top 250 Latino realtors by volume and income; and the top 250 Latino mortgage originators by transactions and volume. The closing date for nominations is April 29 and details can be found on nahrep.org