(Reuters) – Wells Fargo (WFC.N) will pay $2.09 billion in penalty for alleged misrepresentation of loan quality, the U.S. Department of Justice said on Wednesday.
FILE PHOTO: A man walks by an ATM at the Wells Fargo & Co. bank in downtown Denver, U.S., April 13, 2016. REUTERS/Rick Wilking/File Photo
The fine is for alleged origination and sale of residential mortgage loans that the lender knew contained misstated income information and did not meet the quality that Wells Fargo represented, the DoJ said in its statement here
“Today’s agreement holds Wells Fargo responsible for originating and selling tens of thousands of loans that were packaged into securities and subsequently defaulted,” said Alex G. Tse, acting U.S. Attorney for the Northern District of California.
Wells Fargo could not be immediately reached for comment.
Reporting by Sweta Singh in Bengaluru; Editing by Saumyadeb Chakrabarty