{"id":7228,"date":"2019-06-12T14:00:21","date_gmt":"2019-06-12T19:00:21","guid":{"rendered":"https:\/\/www.investorlawyers.com\/?p=7228"},"modified":"2019-06-12T14:00:21","modified_gmt":"2019-06-12T19:00:21","slug":"wells-fargo-sued-in-rmbs-fraud-case","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/wells-fargo-sued-in-rmbs-fraud-case\/","title":{"rendered":"Wells Fargo Sued for More than $1B in RMBS Fraud Case"},"content":{"rendered":"

\t\t\t\tThe Federal Housing Finance Agency <\/a>(FHFA) has filed a more than $1B residential mortgage-backed securities <\/a>(RMBS) fraud lawsuit against Wells Fargo<\/a> (WFC) on behalf of Freddie Mac<\/a>. The government-owned mortgage company had invested in over $1B in RMBSs backed by NovaStar loans prior to the 2008 financial crisis. NovaStar, once a subprime lender, is no longer in operation.<\/p>\n

While several banks underwrote the securities, the investor fraud case is targeting Wachovia Capital Markets, LLC, an ex-Wachovia brokerage firm, that is now Wells Fargo Securities, LLC. Wachovia was a Wells Fargo acquisition in 2008.<\/p>\n

According to the RMBS fraud case, FHFA claims that offering documents sent to Freddie about\u00a0the quality of the loans backing the RMBSs were misleading. The independent federal agency contends that Wachovia, which played a part in packaging these securities, put out registration statements that were also allegedly misleading and included misrepresentations that eventually resulted in Freddie Mac sustaining huge financial losses.<\/p>\n

Continue Reading \u203a<\/a><\/div>\n","protected":false},"excerpt":{"rendered":"

The Federal Housing Finance Agency (FHFA) has filed a more than $1B residential mortgage-backed securities (RMBS) fraud lawsuit against Wells Fargo (WFC) on behalf of Freddie Mac. The government-owned mortgage company had invested in over $1B in RMBSs backed by NovaStar loans prior to the 2008 financial crisis. NovaStar, once a subprime lender, is no […]<\/p>\n","protected":false},"author":2,"featured_media":424,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[3742,3753],"tags":[2517,3728,2700,3718,2650,3022],"class_list":["post-7228","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-collateralized-debt-obligation","category-mortgage-backed-securities","tag-freddie-mac","tag-loreley-financing","tag-magnetar-capital","tag-novastar","tag-residential-mortgage-backed-securities","tag-wells-fargo"],"yoast_head":"\nWells Fargo Sued for More than $1B in RMBS Fraud Case — Investor Lawyers Blog — June 12, 2019<\/title>\n<meta name=\"description\" content=\"The Federal Housing Finance Agency has filed a more than $1B residential mortgage-backed securities fraud lawsuit against Wells Fargo.\" \/>\n<meta name=\"robots\" content=\"index, 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