The federal government has sued Wells Fargo Bank in New York, blaming the nation’s largest originator of home mortgages for thousands of loan defaults over the last decade.
As the U.S. Postal Service was bracing for its first default on billion dollar loan payments due to the Treasury, Minority House Leader Nancy Pelosi placed the blame on inaction by the GOP.
The real estate tracking firm RealtyTrac recorded a 17 percent increase in default notices in California during October, a sign the housing market has yet to hit bottom despite a marked improvement from 2010.
California prosecutors have filed a major lawsuit against several lawyers and call center operators for allegedly running a nationwide scam to dupe desperate homeowners into paying thousands of dollars to join dubious lawsuits against the country’s largest banks.
Funding for high speed rail, which remains uncertain, could be further jeopardized by the budget deal that avoided default.
San Jose State Economics Professor Jeff Hummel has said it would have been a good thing if the government had defaulted on its debt.
Mortgage default notices in California have dropped in the second quarter of 2011 to their lowest level in four years.
The latest numbers show that fewer homes in Silicon Valley are being foreclosed on, but that may not necessarily be a good thing.
Wells Fargo & Co., one of the largest lenders to consumers among U.S. banks, on Wednesday said its fourth-quarter profit shot up, as its customers payment habits improved and it was able to lower the amount of reserves set aside to cover souring loans.
Wells Fargo admitted Wednesday it made mistakes in the paperwork for thousands of foreclosure cases and promised to fix them.