Ooh so Wells Fargo screwed the government out of hundreds of
millions of dollars of mortgage insurance by fraudulent
underwriting, allegedly. We’ve all heard big-bank mortgage fraud
stories by now and they’re usually pretty juicy and smoking-gun-
tastic: “shit breathers,” etc. And the government claims that
WFC submitted somewhere between 6,000 and 50,000 bad loans,
while specifically describing a dozen or so in the complaint,
presumably cherry-picked for maximum offensiveness. Let’s look
at one:  92. FHA case number 352-4948464 relates to a property
on Martin Luther King Blvd. in Newark, NJ (the “King Blvd.
Property”). Wells Fargo underwrote the mortgage for the King
Blvd. Property, reviewed and approved it for FHA insurance, and
certified that a DE underwriter had conducted the required due
diligence on the loan application and that the loan was eligible
for HUD mortgage insurance. The mortgage closed on or about July
23, 2003.  93. Contrary to Wells Fargo’s certification, Wells
Fargo did not comply with HUD