Mortgage Loan Officer Caught, Victim Awarded Damages

A Montgomery County, Maryland jury awarded a homeowner, who defaulted on her mortgage loan, 1.25 Million Dollars, resulting from the Wells Fargo Bank’s loan officer inflating her income and assets on the loan application for the sub-prime mortgage loan the homeowner was approved for.  This is exactly the scenario which got some many thousands and thousands of people in deep financial trouble!  Here, this woman’s salary was $88,000.00; the loan officer reported on the application as being $168,000.00.  The loan officer told the woman her loan would be at a rate of 7%, making her monthly payments about $3,000.00.  Turns out the loan  ended up being at a rate of 10.6%.  The jury’s award to the woman was broken down as $250,000.00 to compensate her, and $1 Million to punish Wells Fargo.