[ad_1]
Legal fees are taken into account when banks determine whether customers are eligible for mortgage changes or repayment plans. Wells Fargo said the owners were not being charged for inaccurate lawyer fees.
Wells Fargo now estimates that about 545 homeowners have lost their homes after being "wrongly denied" a loan modification or have been found to be ineligible.
The bank said the problem affected some accounts during the foreclosure process between March 15, 2010 and April 30, 2018, when new controls were put in place.
"We are so sorry that these mistakes have happened," said a spokesman for Wells Fargo in a statement.
In all, Wells Fargo said that about 870 customers were denied a loan modification or were not offered a loan modification for which they would have qualified.
Wells Fargo said it contacted most of the affected customers to correct their account and offer free, independent mediation. The bank said it was trying to contact the remaining customers.
Wells Fargo continues to examine the problem and its mortgage modification tools. The company set aside $ 8 million in the second quarter to compensate the victims.
Americans for Financial Reform, a progressive financial reform group, urged Wells Fargo to complete a comprehensive review identifying all relevant homeowners, ensuring the security of its systems and providing full compensation for "serious harm".
Until there, "Wells Fargo's excuses are hollow and insufficient," said Linda Jun, Senior Policy Advisor at Americans for Financial Reform.
A litany of errors
The foreclosure mess adds to the list of customers who have been hurt by problems in Wells Fargo.
Jackie Wattles from CNN contributed to this report.
[ad_2]Source link
