Big news for borrowers

According to the Minneapolis Star Tribune

Wells Fargo & Co. has agreed to pay $85 million to settle civil charges that it falsified loan documents and pushed borrowers toward subprime mortgages with higher interest rates during the housing boom.

So how many people might be involved?

Between 3,700 and roughly 10,000 people could be compensated under the settlement, the Fed said. The payments will likely range from $1,000 to $20,000.

What does it mean?

Federal regulators and state attorneys general are meeting with banks to try and strike a settlement that will significantly change the mortgage industry, forcing lenders to modify more mortgages and provide greater protections for borro

wers. A final agreement is not expected for several months.

Submitted by Minnesota exclusive home buyer agent, Mary Rugani.

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