Wells Fargo hit with $3.1 million fine in mortgage servicing mess

Judge calls bank's conduct 'reprehensible'

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Paul Sakuma/AP

A federal judge ordered Wells Fargo to pay $3.1 million in punitive damages over its mishandling of a homeowner's loan, according to a report in the Huffington Post.

The opinion was issued by Elizabeth Magner, a federal bankruptcy judge in the Eastern District of Louisiana. Manger described Wells Fargo's behavior as "highly reprehensible" in its five-year fight with the homeowner.

The plight of the homeowner was raised in a Jan. 27 story on iWatch News

In an emailed statement published in the Huffiington Post, Wells Fargo spokesman Tom Goyda said "we believe that there are numerous factual and legal problems with the opinion and are reviewing our options regarding an appropriate legal response."

Meanwhile the Consumer Financial Protection Bureau, created by the Dodd-Frank financial reform law, is reportedly considering new rules to require lenders to provide borrowers with more information about the status of their loans.

 

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