Punishing Wells Fargo for alleged mortgage funny business, the Federal Reserve has fined the bank $85 million. Accusations include falsifying mortgage applications to let unqualified borrowers receive mortgages and directing those with good credit into costly subprime mortgages.
CNNMoney reports the fine is a record, and Wells Fargo must compensate borrowers who have been adversely affected by the practices. The Fed contends that the bank’s compensation structure was based on rewarding employees for pushing the improper mortgages. The loans in question affected as many as 10,000 borrowers between 2004 and 2008.
Wells Fargo agreed to pay the fine without admitting it did anything wrong.
Fed hits Wells Fargo with $85 million fine [CNNMoney]