Wells Fargo says an internal error has caused more foreclosures than expected

(Reuters) – Wells Fargo & Co (WFC.N) said on Tuesday that an internal underwriting error led him to reject the changes made to the home loan, which led the bank to grab more housing than expected.

The bank said in a document filed with regulators that a thorough review had revealed that 870 customers had been wrongly denied modifications to their mortgage loan, which had led to 545 $. between them to lose their home.

This comes after the bank in August had for the first time revealed a miscalculation in an internal underwriting software, which had caused 625 borrowers an incorrect modification of mortgages under a federal assistance program, of which 400 had been seized.

"We are very sorry that the mistakes have occurred and we have assigned a single dedicated point of contact to ensure that each client is engaged and assisted individually," company spokesman Tom Goyda said. electronic.

The company said the extended review was still ongoing and that it was taking into account customers waiting to be seized from March 15, 2010 to April 30, 2018.

Goyda stated that the bank had contacted a substantial majority of the concerned customers in order to propose remedial measures, as well as the possibility of pursuing a free mediation with an independent mediator.

These revelations are an additional headache for the San Francisco bank, which faces many regulatory and private lawsuits, most of which stem from a scandal of business practices that has affected all of the bank's major business units.

The bank stated that the problem arose from a miscalculation that overestimated the legal fees needed to determine whether a client qualified for a mortgage loan modification or repayment plan.

In August, the bank said it had rectified miscalculations and set aside $ 8 million to compensate borrowers. On Tuesday, the bank did not update this figure.

The bank has updated information on problems discovered in the auto sector, adding that it has added an additional $ 241 million in customer compensation, in addition to the $ 212 million previously announced . repossession.

The bank has since discontinued this practice.

(This story corrects by claiming that the bank has added an additional $ 241 million for client compensation, without increasing it to $ 241 million in penultimate paragraph.)