Wells Fargo Loses Bid to Block FHA Mortgage-Fraud Suit
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Wells Fargo & Co. failed to convince a federal appeals court that a multibank mortgage settlement in 2012 barred the government from suing over home lending practices it claims led to hundreds of millions of dollars in federal insurance payouts.
The national mortgage settlement outlines rights the government retained to pursue further action against Wells Fargo and the bank’s “effort to escape those contractual limitations fails,” the U.S. Court of Appeals in Washington ruled today.