Wells Fargo to Refile 55,000 Foreclosure Documents
One of the nation’s largest lenders, Wells Fargo, has has backed off its previous stance that its foreclosure practices were 100 percent above board. The bank announced Wednesday that it would be submitting additional paperwork in 55,000 foreclosure cases pending in courts across the nation.
The loan servicer, which has reportedly been reviewing its own foreclosure procedures since the scandal broke last month, reported finding a number of cases where the final step in the foreclosure affidavit process did not conform to its own policies.
A spokesman said that the issues do not compromise quality of customer and loan data and did not lead to any improper foreclosures. Mike Heid, co-president of the bank’s Home Mortgage branch, said in a statement that the bank is trying “to do everything we can to assure that the procedures we have in place provide Wells Fargo borrowers and others with confidence that foreclosure proceedings we initiate are done appropriately.”
Wells is the latest of a number of major US lending firms to acknowledge issues with foreclosure procedures. Bank of America announced last week plans to file new affidavits in over 100,000 cases, and five other major loan servicers have similarly announced document reviews.
Wells Fargo, hoping to complete the process by November, will begin submitting the new affidavits immediately. The bank says that in cases where they are unable to submit the updated affidavits before the case comes before a judge, they will request an extension. The bank reiterated previous statements that their foreclosure process will continue and no moratorium will be self-imposed.