(Bloomberg News) A bondholder group that won an $8.5 billion settlement from Bank of America Corp. on securities backed by soured home loans may also seek payments from Wells Fargo & Co., the nation's biggest mortgage lender.
The law firm Gibbs & Bruns LLP said in a statement today it's seeking information on pools securing more than $19 billion of residential mortgage-backed securities issued by affiliates of Wells Fargo.
Faulty mortgages and foreclosures have cost the five largest U.S. home lenders about $70 billion since the start of 2007 and helped drive Bank of America's shares down almost 60 percent in the past 12 months. Gibbs & Bruns said last month it may also seek reimbursements from JPMorgan Chase & Co., the biggest and most profitable U.S. bank.
"Our clients continue to seek a comprehensive solution to the problems of ineligible mortgages in RMBS pools and deficient servicing of those loans," Kathy Patrick, the Houston-based law firm's lead counsel on the case, said in the statement. Mary Eshet, a spokeswoman for San Francisco-based Wells Fargo, didn't have an immediate comment.