Wells Fargo Calls For Dismissal Of New Federal Lawsuit

Posted by Orb Staff on November 02, 2012 No Comments
Categories : Residential Mortgage

12684_wellsfargo Wells Fargo Calls For Dismissal Of New Federal Lawsuit Wells Fargo & Co. has requested the dismissal of a lawsuit filed last month by the federal government, arguing that the issue was already resolved in the National Mortgage Settlement.

The Wall Street Journal reports that the San Francisco-based lender argues that the settlement releases it from liability on loans that were insured by the Federal Housing Administration. Wells Fargo adds that if the court believes that the settlement's language is too vague to enable the lawsuit's dismissal, it would then seek to depose the Obama administration officials that negotiated the settlement in order to confirm the exact details of the settlement.

‘Wells Fargo committed billions to the United States in settlement of the D.C. action and should be able to rely on the United States to observe and abide by its commitments and representations,’ said the lender in its court filing, adding that that court should provide financial relief ‘to compensate Wells Fargo for the injuries suffered as a result of the repetitive litigation.’

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