Wells To Cough Up $85M To End Federal Reserve Probe Into Allegations Of Illegal Loan Steering, Income Inflation On Loan Applications

The Associated Press reports:

• Wells Fargo & Co. has agreed to pay $85 million to settle civil charges that it falsified loan documents and pushed borrowers toward subprime mortgages with higher interest rates during the housing boom.



• The fine is the largest ever imposed by the Federal Reserve in a consumer-enforcement case, the central bank said Wednesday.



• Wells Fargo, the nation's largest mortgage lender, neither admitted nor denied wrongdoing as part of the settlement. The bank agreed to compensate borrowers who were steered into higher-priced loans or whose income was exaggerated.

For more, see Wells Fargo settles mortgage-abuse case for $85M.