Home Local News PR not in $25B foreclosure deal
Issued : Thursday, February 9, 2012 05:05 PM
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PR not in $25B foreclosure deal


The $25 billion settlement between stateside mortgage lenders and states over foreclosure abuses has no impact on mortgages originated by Wells Fargo subsidiary Reliable Mortgage in Puerto Rico.

On Thursday, President Barack Obama announced a landmark $25 billion deal between the U.S. Justice Department, the five largest mortgage lenders and 49 states over foreclosure abuses.

Bank of America, JPMorgan Chase, Wells Fargo, Citigroup and Ally Financial will pay the multi-billion dollar settlement to reimburse stateside homeowners and overhaul their industry.

“The agreement signed by Wells Fargo has no effect on the mortgages originated by Reliable Mortgage on the island” Néstor Vale, executive vice president of Reliable Financial Services Inc., told CARIBBEAN BUSINESS online.

As previously reported, Wells Fargo announced last February that Reliable Financial Services would be closing its mortgage lending unit Reliable Mortgage to focus on its core auto finance business. The company stopped originating mortgages in the local market in January 2011 and 59 Reliable Mortgage employees in San Juan and Ponce were laid off.

Reliable remains the leading auto finance operation on the island, holding the biggest share of both the loan and leasing segments.

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