Wells Fargo says internal error caused more home foreclosures than expected

NEW YORK

Nov 8, 2018-

Wells Fargo & Co said on Tuesday an internal underwriting error had caused it to reject home loan modifications, resulting in the bank foreclosing more homes than expected. The bank said in a filing with regulators that an expanded review found that 870 customers were incorrectly denied mortgage changes, leading to 545 of them losing their homes. This comes after the bank in August had for the first time disclosed a calculation error in an internal underwriting software had caused 625 borrowers to be incorrectly denied mortgage loan modifications under a federal assistance programme, 400 of whom had their homes foreclosed upon. “We’re very sorry that the errors occurred and have assigned a single, dedicated point of contact to ensure that each customer is engaged with and assisted individually,” Tom Goyda, a spokesman for the company, said in an email. (REUTERS)

Published: 08-11-2018 08:52

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