The U.S. government has filed suit against Wells Fargo for recklessly underwriting home loans over the last several years. According to
CNNMoney, a lawsuit was filed on Tuesday accusing Wells Fargo of recklessly underwriting hundreds of loans which resulted in the Federal Housing Administration paying out millions of dollars in insurance claims on the defaulted loans. Additionally, the bank was accused of hiring temporary staff to churn out loans while rewarding employees based on the number of loans processed. The FHA along with the U.S. Attorney's Office and the U.S. Department of Housing and Urban Development have filed similar fraud lawsuits against four other banks, three of which have been settled.
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