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Servicing

Wells Fargo settles another robosigning lawsuit

This one brought by shareholders, not homeowners

Wells Fargo

Wells Fargo (WFC) settled another lawsuit in relation to alleged robosigning activity at the big bank.

This time, as opposed to a national settlement from Attorneys General, this $67 million settlement resolves a lawsuit brought by shareholders against the Wells Fargo board of directors.

"As a result of the alleged so-called “robo-signing” at Wells Fargo, the Federal Plaintiff alleges that the Federal Individual Defendants breached their fiduciary duty of loyalty owed to Wells Fargo and its stockholders," the court filing said. 

Wells Fargo spokesman Tom Goyda said "Wells Fargo and its directors are pleased to have resolved this matter."

"We remain committed to our efforts to assist borrowers facing financial challenges and believe this settlement benefits the company, our customers and our shareholders," he added.

As a result of the settlement, Wells Fargo will agree to some homeowner counseling and down-payment assistance.

A little less than half will go to a single, robust mortgage-servicing platform that Wells Fargo reportedly already has in the works.

Wells Fargo, along with other major mortgage servicer and lenders, settled foreclosure abuse charges in 2012.

The past settlement with the AGs required the San Francisco bank to provide $4.3 billion in total relief. 

Bank of America (BAC)JPMorgan Chase (JPMM), Citigroup (C) and Ally Financial (ALLY) were also included in the  original $62.11 billion gross relief to more than 300,000 borrowers.

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