Wells Fargo puts up $13 million to end kickback class action

Posted on: March 1st, 2013 by Steve Larson

House key ring vectorWells Fargo & Co. will pay nearly $13 million to put to rest a class action accusing it of receiving illegal kickbacks from its mortgage reinsurer, according to a deal signed off on by a Pennsylvania judge Friday.

The deal, which will amount to gross payments of $173 to each of the nearly 74,000 class members, resolves allegations that Wells Fargo accepted kickbacks from reinsurer North Star Mortgage Guaranty Reinsurance Co. in violation of the Real Estate Settlement Procedures Act of 1974.