Wells Fargo & Co agreed to pay $1.2 billion to settle claims that it engaged in mortgage fraud.
"The 2012 lawsuit accused Wells Fargo of engaging in a "reckless" mortgage origination and underwriting practices from 2001 to 2005.
It also said Wells Fargo had failed to report more than 6,000 loans from 2002 to 2010 that did not meet requirements for insurance under the Federal Housing Administration and failed to properly review early payment defaults.
Beyond naming Wells Fargo as a defendant, the civil lawsuit named Kurt Lofrano, a vice president at the bank accused of playing a "critical role" in not reporting the loans to government officials.
It was not clear if the settlement applied to Lofrano. But a letter filed later on Wednesday by lawyers who work with Bharara said the deal resolves "all claims in this matter."
http://www.nytimes.com/reuters/2016/02/03/business/03reuters-wellsfargo-housing.html
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