Wells Fargo & Co. (WFC) wants a Department of Justice case over losses on mortgage loans insured by the Federal Housing Administration dismissed for violating the statute of limitations and for reiterating claims already made in a now settled case.
The case is a civil fraud action brought by the U.S. Attorney for the Southern District of New York against Wells Fargo for the alleged reckless underwriting of loans written from May 2001 through Oct. 2005.
HUD insured the loans and claims Wells Fargo's concealment of the true condition of some 6,000 loans insured by the FHA kept the bank from having to pay HUD $190 million to indemnify some of the losses on those mortgages.
Wells Fargo pushed back this past week, asking a court to dismiss the case because the issue is barred by another settlement between the U.S and Wells Fargo in a U.S. District Court District of Columbia case. Wells Fargo also claims the suit is barred by the statute of limitations.