Wells Fargo to correct 55,000 questionable files

31 Oct
Top News
Thursday, 28 October 2010 18:09
By Elizabeth Martinez

Miami, FL- Wells Fargo & Company said on Wednesday that it planned to correct and resubmit up to 55,000 improperly filed documents by mid-November. Wells Fargo has been saying for weeks, that their foreclosure processes were correct and there was nothing to be corrected; however, after their review on their processes, it seems that the situation is quite different than they expected.

Wells Fargo admitted that they found out that bank employees had failed to “strictly adhere” to its required procedures during a final step in its documentation processes. It also acknowledged that “some aspects of the notarization process” had not always been properly followed, and this created the potential for faulty affidavits.

“The company has identified instances where a final step in its processes relating to the execution of the foreclosure affidavits (including a final review of the affidavit, as well as some aspects of the notarization process) did not strictly adhere to the required procedures,” it said in a statement.

According to reports by Wells Fargo officials, the bank is currently correcting approximately 55,000 questionable foreclosure files. Furthermore, they are planning to resubmit them in 23 states where foreclosures require court approval.

Although the Bank officials have accepted the responsibility for these questionable files, they still maintain their belief that the underlying information in the foreclosure files was accurate and there were no improper or unnecessary foreclosure that took place on struggling homeowners.

“The issues the company has identified do not relate in any way to the quality of the customer and loan data,” the San Francisco-based bank said in the statement. “Nor does the company believe that any of these instances led to foreclosures which should not have otherwise occurred.”

Unlike the other major banks who decided to freeze foreclosures as a result of those faulty affidavits, Wells Fargo said that it had no plans to temporarily freeze foreclosures.
It is important to point out that wells Fargo is not alone in this resubmitting of cases. Four of the other large mortgage lenders are also resubmitting tens of thousands of cases in areas around the country, reports indicate. Chase said it was looking at approximately 115,000 files in 41 states. In addition, Bank of America is looking at 102,000 cases in 23 states.

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Posted by on October 31, 2010 in Uncategorized


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