Wells Fargo & Company is paying $24 million to end an investigation by eight states into whether lenders acquired by the bank made risky mortgages to consumers without disclosing their perils.
The states said loans known as option adjustable-rate loans, or pick-a-payment mortgages, were deceptive. Those loans allowed borrowers to defer some interest payments and add them to the principal balance. Borrowers could make payments so low that loan debt each month.
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