Wells Fargo Discloses Tax-Credit Probe, Accidental Foreclosures
- Lender says U.S. agencies are examining purchases of credits
- Separate review finds miscalculation led to 400 foreclosures
Pedestrians pass in front of a Wells Fargo & Co. bank branch in New York.
Photographer: Victor J. Blue/BloombergThis article is for subscribers only.
Wells Fargo & Co. disclosed another round of lapses and potential scandals in a quarterly report Friday, saying it faces a U.S. inquiry into its purchase of low-income housing credits and conceding it may have unnecessarily foreclosed on about 400 homeowners.
Government agencies are examining how Wells Fargo negotiated and purchased “certain federal low-income housing tax credits in connection with the financing of low-income housing developments.” The San Francisco-based bank didn’t identify the agencies in the filing.