Wells Fargo Can’t Ditch Suit Over Alleged Mortgage Kickbacks

Wells Fargo must face a suit from customers alleging the bank assigned their mortgages to a title insurance firm in exchange for illicit kickbacks, a federal judge said Jan. 31.

The mortgage customers said they were overcharged as part of Wells Fargo Bank NA and Patriot Land Transfer LLC’s illegal kickback scheme. Wells Fargo allegedly referred and assigned loans to Patriot in exchange for leads on other potential borrowers.

The bank tried to dismiss the would-be class suit, but the case will remain in New Jersey federal court after Judge Renée Marie Bumb refused to grant Wells Fargo’s motion.

The ...