Wells Fargo to Forego an Additional $300 Million in Interest

by San Antonio Attorney

Wells Fargo & Co, the mortgage lender sued by the government for “reckless” refinance mortgages practices, said on Tuesday it may forgo $2 billion in interest, which is more than $300 million than earlier estimated.

The lost interest is likely between $1.8 billion and $2 billion in future years, or an estimate of $181 million up to $201 million per year, based on the quarterly regulatory filing of Wells Fargo.

About 36,000 borrowers may avail of lower interest rates, the filing shows. In August, Wells Fargo had estimated that 40,000 may be covered.

This is part of the mortgage settlement deal by five major banks with the federal government and forty-nine states. The $25 billion mortgage settlement, which is the biggest federal-state civil settlement in the history of the United States, concluded in February a 16-month investigation of deceptive foreclosure practices. Bank of America has the biggest financial obligation in the settlement, which is $11.8 billion.

In another filing, the largest home lender in the country stated that its overall exposure to other countries, including non-sovereign entities of Europe, increased 6% to more than $30 billion during the last full quarter. It provided more loans and increased commitments to European governments, like Germany and Austria, and also the United Kingdom, from $2.1 billion in June to $2.3 billion in September, based on the bank’s filing.

Wells Fargo expanded its holdings, which includes debt and equity stock options, with non-sovereign entities from those countries from $26.4 billion in June to $27.9 billion in September.

The lender increased 0.9% to close at $34.32 in NYSE. The shares have in increased 36% in the last 12 months, surpassing the 28% gain in the 24-company KBW Bank Index.

– When your debts pile up faster than your ability to repay them, you can work with creditors through the courts to fix the problem. Bankruptcy is not normally the initial solution, but it usually becomes the reasonable option when facing insistent bill collectors. A San Antonio Bankruptcy  can help you file for Chapter 11 bankruptcy to give you time to restructure your finances.

If you have been a victim of any unfair practices by your credit card company, such as high rate increases, unfair charges or broken promises, and want to take action against them, you should ask a San Antonio Lawyer to review your claim.

If you are facing foreclosure, seeking bankruptcy protection might be able to help. Oftentimes, filing Chapter 7 bankruptcy can delay the foreclosure by a few months. Homeowners may be able to save their property by filing for Chapter 13 bankruptcy. A bankruptcy Attorney San Antonio can help you deal with your mortgage problem by figuring out the best option for your unique situation.

The American housing market is in mayhem, as is the economy. If you have mortgage-related concerns, contact a Real Estate Attorney San Antonio to ensure that your rights are protected and your best interests are being served.

– The courts and media have criticized the mortgage lending industry for making use of false affidavits in a large number of foreclosure cases. After regulators discovered this practice, some large banks froze pending foreclosures. For some homeowners, the robo-signing blunder may provide opportunities to avoid their foreclosures. Contact a Real Estate Attorney specializing in foreclosures to help you save your home.


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