Huffpost Business

Wells Fargo Settles With Maryland AG Over Allegedly Deceptive Mortgage Marketing

Posted: Updated:

(AP) BALTIMORE — Maryland Attorney General Doug Gansler has announced an agreement with Wells Fargo relating to allegedly deceptive marketing of adjustable rate mortgages written by companies it acquired in 2008.

Gansler said Thursday that the settlement involves mortgages written by Wachovia and Golden West Financial.

Gansler says the settlement will create loan modifications for some customers. He also says Wells Fargo has agreed to pay about $940,000 for restitution to "Pick-a-Payment" borrowers who lost their homes in foreclosure.

The attorney general's Consumer Protection Division says Wachovia and Golden West did not fully explain to borrowers who chose a loan with payments that were less than the interest actually due that their minimum payments would not cover the full interest and that their principal debt would actually increase over time.


Suggest a correction

Around the Web

Gansler announces mortgage rate settlement with Wells Fargo

Wells Fargo Faces Scrutiny by Investors on Soured Mortgage Securities

Wells Fargo Touts Help At Mortgage Mod Event in Hartford


Mortgage Rates: Low Mortgage Rates Continue As Euro Zone Concerns Return

MetLife Continues to Win Big in Wells Fargo's Exit Wake