The LA Times reports that allegations in a new lawsuit filed by a Wells Fargo mortgage banker accuse the beleagured banking giant of hitting mortgage customers with added fees for delays the bank deliberately caused to the processing of their mortgages. The new case arose on the heels of Wells Fargo’s admitted abusive fake accounts scandal and other related troubles for the bank.
According to the complaint in the new lawsuit, Wells Fargo “would systematically attempt to charge or pass the rate lock expiration fees on to customers, even when the delay was not the customer’s fault,” leading to Wells Fargo borrowers paying millions in improper fees. The problems are said to have arisen in part because of chronic understaffing with relevant divisions of the bank, despite Wells being the largest mortgage lender in the United States, covering an estimated 12% of all mortgages in the country — nearly one out of every eight mortgages issued.
In a related story, Wells Fargo reported net income for the second quarter of 2017 of $5.81 billion, results that exceeded Wall Street expectations.
Read the full story on the LA Times website.