Housing market conditions pushed affordability to a 10-year low in the second quarter, according to the National Association of Home Builders/Wells Fargo Housing Opportunity Index.
Sen. Brian Schatz, D-Hawaii, said it is hard to imagine how Wells Fargo's $8 million remediation plan would correct a mistake that led to 400 wrongful foreclosures.
Wells Fargo estimates that in 400 instances, borrowers later went through foreclosure who were improperly denied or not offered a mortgage modification.
Multiple agencies are looking into its purchase of certain credits tied to low-income housing developments, the bank said in a securities filing Friday.
The agreement was likely the last of the big cases to be cleared by the Justice Department, and Wells paid less than its peers did to resolve the lingering mortgage probes stemming from the meltdown.
Ten years after faulty mortgages upended the global financial system, Wells Fargo agreed to pay $2.09 billion to settle a U.S. probe into its creation and sale of loans that contributed to the disaster.
Wells Fargo has named Senior Vice President Jeff Smith to succeed Perry Hilzendeger as head of home loan servicing following Hilzendeger's earlier appointment to head of retail home lending.
This year's sluggish spring home buying season led to generally softer mortgage-related second quarter results at Wells Fargo, JPMorgan Chase, Citigroup and PNC Financial Services Group, but First Republic Bank bucked the trend.
