U.S. District Judge Amy Totenberg ruled that Wells Fargo & Co., the biggest U.S. home lender, must face a lawsuit that accuses the bank of overcharging veterans under a federal loan-refinancing program, Bloomberg News reported yesterday. Judge Totenberg denied Wells Fargo's bid to dismiss the complaint filed against the bank by two mortgage brokers, saying that their allegations are "plausible and sufficient," according to a decision filed on Monday. The plaintiffs "have made factually specific allegations regarding mechanics of defendant's routine practice of creating false documents and making false statements to the VA in order to obtain guarantees on loans," Totenberg wrote in her decision.
