Wells Fargo Admits Wrongfully Foreclosing on 400 Homeowners

By on August 7, 2018

In the latest admission by scandal-plagued Wells Fargo, the bank revealed that a computer glitch caused 625 improper denials for loan modifications, leading to 400 wrongful foreclosures.

The error occurred “between April 13, 2010, and October 20, 2015, when the error was corrected.” This begs the question: if the error was corrected in October 2015, why did Wells Fargo publicly disclose it only now?

The revelation, made in a report the bank filed with the Securities Exchange Commission, comes just days after Wells Fargo announced a $2 billion settlement with the U.S. Department of Justice over the bank’s sale of mortgage-backed securities that the DOJ said contributed to the financial crisis.

According to Wells Fargo, it set aside $8 million to deal with the 400 wrongful foreclosures, claiming it would remediate the wrongs.  That amount equals $20,000 per homeowner, a pittance for Wells Fargo, and likely far below what the true damage inflicted.

For those unable to keep up with Wells Fargo’s growing list of scandals, the following article provides a good summary: