Wells Fargo (WFC) Expects Fine in Mortgage Probe

Wells Fargo & Co.’s (NYSE:WFC) lending and foreclosure practices probably will draw an enforcement action that may include a fine, the bank said today (Friday) in a regulatory filing.

“It is likely that one or more of the government agencies will initiate some type of enforcement action against Wells Fargo, which may include civil money penalties,” the San Francisco-based lender said in its annual report. “Wells Fargo continues to provide information requested by the various agencies.”

Wells Fargo said the high end of estimated litigation losses could be $1.2 billion beyond the reserve already set aside, according to the filing. The bank, which ranks as the biggest U.S. mortgage lender, said it didn’t expect litigation costs to have a “material adverse” impact on its financial position.

Wells Fargo completed its own review of foreclosures in the fourth quarter and doesn’t believe any unwarranted seizures occurred, according to the filing.




Full Story