Daily News: November 25, 2013

Bloomberg: Wells Fargo’s Lofrano Should Be Added to Suit, U.S. Says

Bloomberg reported that the U.S. government claims in a filing in Manhattan federal court that Wells Fargo & Co. Vice President Kurt Lofrano played a “critical role” in helping the bank hide fraudulent home loans that cost the U.S. $189 million.

Bloomberg said lawyers for the U.S. asked a judge to let it add Lofrano to its fraud suit, claiming Wells Fargo was reckless in underwriting mortgage loans and failed to report fraudulent and noncompliant loans to the U.S. Department of Housing and Urban Development. The U.S. says in the filing the fraud forced the Federal Housing Administration to pay $189 million in insurance claims on defaulted loans, Bloomberg added.

To read the entire Bloomberg article, click here.