Updates to our Terms of Use

We are updating our Terms of Use. Please carefully review the updated Terms before proceeding to our website.

Thursday, March 28, 2024 | Back issues
Courthouse News Service Courthouse News Service

Class Action Accuses Wells Fargo Bank|Of Taking Kickbacks For Mortgage Insurance

PHILADELPHIA (CN) - Wells Fargo Bank and its wholly owned subsidiary, North Star Mortgage Guaranty Reinsurance Co., violate lending laws by conspiring to receive kickbacks from private mortgage insurers through "captive reinsurance arrangements," a class-action complaint claims in Federal Court. Plaintiffs claim Wells Fargo made $400 million from 1999-2006 "by arranging for the private mortgage insurer(s) to pay an excessive portion of borrowers' private mortgage insurance premiums to North Star in the form of purported reinsurance premiums" while paying "zero" in claims. See complaint.

Categories / Uncategorized

Subscribe to Closing Arguments

Sign up for new weekly newsletter Closing Arguments to get the latest about ongoing trials, major litigation and hot cases and rulings in courthouses around the U.S. and the world.

Loading...