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Wells Fargo is not out of the woods yet even after agreeing to a 1 point 2 billion dollar settlement earlier in February over its underwriting practices on FHA-insured loans. According to Wells Fargo’s annual 10-K filing this week, the bank is now being investigated by the U.S. Department of Justice and other federal and state regulators over its mortgage practices.
Wells Fargo said in the SEC filing that regulators were investigating the bank over, quote, certain mortgage-related practices of Wells Fargo and predecessor institutions. . . Wells Fargo, for itself and for predecessor institutions, has responded, and continues to respond, to requests from these agencies seeking information regarding the origination, underwriting and securitization of residential mortgages, including sub-prime mortgages, close quote.
Lawmakers and activists that have been calling for Fannie Mae, Freddie Mac, and HUD to sell their non-performing mortgage loans to non-profits saw their wish come true on Thursday. New Jersey Community Capital, a non-profit Community Development Financial Institution, was the winning bidder for Fannie Mae’s second-ever Community Impact Pool auction of non-performing, deeply delinquent single-family residential mortgage loans. The pool contained 53 deeply delinquent loans in the Miami area with an unpaid principal balance of 13 million dollars.
