Wells Fargo (WFC) steered nearly 10,000 borrowers into higher-cost Federal Housing Administration loans from 2009 to 2011 and has been sending refunds to borrowers acknowledging that they would have qualified for less-expensive conventional financing.

Wells, the No. 1 originator of home loans, started mailing letters and refund checks to borrowers in September after an internal review uncovered the errors, says Wells Fargo spokeswoman Vickee Adams.

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