Partner Lawrence Remmel, Chair of Pryor Cashman’s Banking and Finance Group, was quoted in the The New York Times article “Wells Fargo Fourth Quarter Profit Rises 21%” which appeared on January 20, 2011.

The article notes that earlier this month, the high court in Massachusetts ruled against Wells Fargo and US Bancorp in an important foreclosure case that could have ramifications for the entire banking industry. The state Supreme Judicial Court ruled the banks had wrongly foreclosed on two homes, because they could not prove they owned the mortgages.

The industry has been closely watching this case, as many homeowners are challenging foreclosures brought by banks without proper documentation. Regulators in all 50 states have begun investigations into whether hundreds of thousands of foreclosures made in recent years were invalid. 

Some banks temporarily suspended foreclosures last year. Wells Fargo officials say they largely have dodged the documentation problems, and have decided not to halt foreclosures. Remmel told The New York Times that “at the end of the day, the litigation will be less of an impact on Wells Fargo than people fear.”

To read the article, please click here.