NEW YORK – Wells Fargo & Co (WFC.N) is facing government probes into its use of low-income housing tax credits, and has also set aside $8 million to compensate borrowers who were incorrectly denied mortgage modifications under a federal assistance program, the bank said in a regulatory filing on Friday.
The new disclosures add to Wells Fargo’s numerous regulatory penalties, private lawsuits and remediation efforts. Most stem from a sales practices scandal that has touched on all of the bank’s major business units.
The tax inquiries are being conducted by multiple agencies, which Wells Fargo did not name in its 10-Q filing with the U.S. Securities and Exchange Commission. They focus on how the bank purchased or negotiated the purchase of the credits in connection with financing of low-income housing developments.