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Wells Fargo sued over reverse mortgages

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Wells Fargo & Co. is ignoring federal rules on reverse mortgages and forcing homes into foreclosure instead of giving heirs a chance to buy them, according to a lawsuit in federal court in California, Bloomberg and Investment News reported. The lawsuit said Wells Fargo has not notified heirs of their right to buy properties at 95 percent of appraised value after the death of a relative who had obtained a federally insured reverse mortgage, according to the lawsuit. Wells Fargo said it would not comment before it had a chance to review the complaint, the news services reported.