Wells Fargo Admits to Thousands of Foreclosure Mistakes

Wells Fargo made paperwork mistakes in thousands of foreclosure cases, the bank said Wednesday.Wells Fargo (WFC) admitted Wednesday it made mistakes in the paperwork for thousands of foreclosure cases and promised to fix them.

The San Francisco-based bank said it plans to refile documents in 55,000 of the cases by mid-November. The company said not all those cases included errors but didn't say how many thousands did.

Wells Fargo described the mistakes as technical and said it has no plans to halt the foreclosure process, though filing new paperwork will cause some delays.

"We don't believe that there are instances in which the foreclosures would not have occurred otherwise," said Teri Schrettenbrunner, a Wells Fargo spokeswoman. The documents are being refiled in the 23 states where a judge's approval is needed to complete a foreclosure.

Wells Fargo's CEO, John Stumpf, has declined to join Bank of America (BAC), Ally Financial's GMAC Mortgage and other banks in suspending foreclosures because of flawed paperwork that surfaced at several large banks.

On a conference call with investors this month, Stumpf said the bank is "confident that our practices, procedures and documentation" are accurate.

Questionable Practices

Depositions of two Wells Fargo employees have called the company's foreclosure practices into question. A Fort Mill, S.C.-based Wells employee said in a deposition taken last March that she signed between 300 and 500 foreclosure documents per day.

In another deposition taken in May, another Wells employee said he verified only the dates on up to 150 foreclosure documents he signed daily and relied on co-workers to ensure that other information was correct.

Bank of America is scheduled to meet Thursday with state officials investigating allegations the bank rushed the foreclosure process without properly reviewing documents.

A person briefed on the matter confirmed the parties will have a preliminary discussion about issues related to the foreclosure documents. The person did not give details about the meeting or who will participate. The person, who spoke on condition of anonymity, was not authorized to speak publicly.

Bank of America Resumes Foreclosures

Bank of America, based in Charlotte, N.C., said in a statement: "We have been cooperating with the attorneys general and continue to have dialogue and share information with these important stakeholders."

The bank resumed foreclosures this week after halting them temporarily to resubmit documents with a new process designed to correct any mistakes such as misspelled names or incorrect numbers.

Attorneys general in all 50 states and the District of Columbia are jointly investigating whether paperwork and legal procedures were handled properly in hundreds of thousands of cases.

Bloomberg News reported earlier in the day that state attorneys general were scheduled to meet with lenders this week on the foreclosure-document probe and had conference calls with several lenders, also known as loan servicers.

State Officials to Meet with Lenders

Iowa Attorney General Tom Miller is leading the multistate probe. Geoff Greenwood, a spokesman for Miller, confirmed that a meeting is scheduled for Thursday. He declined to comment on which banks are expected to attend.

Besides state regulators, banking regulators including the Federal Reserve are examining whether mortgage companies cut corners on their own procedures when they moved to foreclose on people's homes.

Despite the problems, the Obama administration maintains there is no need to halt foreclosures in all 50 states.

On Wednesday, Phyllis Caldwell, chief of the Treasury Department's homeownership preservation office, told a financial bailout watchdog panel that there was no evidence of risk to the financial system from the documents scandal - or from efforts by mortgage investors to force banks to buy back problem loans.

Increase your money and finance knowledge from home

Professional Vs Do it Yourself Investing

Should you get advice or DYI?

View Course »

Investing in Real Estate

Learn the basics of investing in real estate.

View Course »

Add a Comment

*0 / 3000 Character Maximum


Filter by:

I have a client that I am doing a short sale with. The client has made his mortage payment since 2005 to Bank of Americal. We were to close on 12/17/2012 -but Wells Fargo has a judgement against this propert with the same loan # as Bank of Americal. I can't get anyone at Wells Fago to respond, to get this lien released. I need a phone # or a person at wells fargo that I can speak with to get this done so we can close, or this property will go to foreclouser. I don't understand. The owner of this home-never had a mortage with Wells Fargo, but that is who has the lien. Wells Fargo also sent the owner a pre foreclouser notice??? How can they do this. Bank of America has said they DO have this mortage and is the one doing the Short Sale??? Can someone please let me know how this can happen???

December 26 2012 at 6:06 PM Report abuse rate up rate down Reply

WHAT A LIE! If you are being foreclosed upon, you should DEMAND THE ORIGINAL NOTE with your "wet ink" signature on it. (A "copy" is insufficient, just like a copy of a dollar is not a dollar). If they can't produce the original note (and they can't), you own the house FREE and clear, i.e., they cannot prove to the court that THEY own the house. By putting all these mortgages into the MERS computer system and selling them to Wall Street, the BIG BANKS made the mistake of separating the NOTE from the FINANCING, and they've LOST most of the original mortgage documents. BY LAW, the ORIGINAL SIGNED MORTGAGE has to be co-located with the financing, but THEY CAN'T FIND THE NOTES. Do not re-finance - that will give them a NEW ORIGINAL SIGNATURE. Every one of the big banks are committing mortgage fraud. They've fraudulently signed homeowners' names in thousands of cases in order to foreclose. STAND UP FOR YOURSELVES! After all those bailouts and committing OUTRIGHT FRAUD upon homeowners en mass, they DESERVE to go bankrupt.

October 30 2010 at 4:51 AM Report abuse rate up rate down Reply
2 replies to too904's comment

What about all the Lies people put on their loan applications to get the loans in the first place? Politicians decided we all should own homes, even those of us who could not afford them. So the Rules were changed to allow almost anyone to get a 30 year loan with "0" down, some even got money back at closing. These people had nothing to loose by not maintaining their houses or not making their payments. The Banks loaned in Good faith that you turned in honest income reports and would maintain the house and improve its value. I haev looked at several foreclesed houses. Many the owners destroyed them prior to leaving, tearing out cabinets, appliances, even the copper from inside the walls. Banks would not even have 30 year loans without our Goverment backing them. Prior to Freddie and Fannie, banks would not make a 30 year fixed loan and home ownership was at 19%. Thanks to Clinton's push for everyone to own a home and give loans to people who lied on applications to get them, Home ownership increased to 69%. Those of us who stand by our word and make our payments are now paying for those who do and did not. There is not one Bank out there that held a gun to your head and forced you to take their (now our) money. Those who have walked away from their loans are no different than Bank Robbers. The Bank loand out our Money, the Feds make no money, they only have our tax dollars to bail out Banks and corporations. Everyone that has walked away from their loans has stollen money from every hond\est American who works hard and pays tax's.

October 30 2010 at 3:55 PM Report abuse rate up rate down Reply

Reply to Bob: The banksters and corporations consider us fools. They found out long ago that in general the American people are honest...and they take advantage of it on a daily basis. This whole financial mess was ENGINEERED, ie. PLANNED. You fail to realize that the JOB LOSS was ENGINEERED in order to PREVENT PEOPLE from being able to pay for their houses. The aim is to make us penniless, homeless, and a 3rd world country for globalization, while bringing the other countries UP to our standards. The Powers that Be have REALLY accomplished their mission, don't you think? Add to this their ongoing efforts at widespread depopulation efforts via flu vaccines (this year's flu shot "contains" H1N1), Gardasil vaccines, chemtrails sprayed from planes with aluminum and barium in our lungs for the last 10 years, Gulf destruction of jobs, food and health (people are dying now of deteriorated esophaguses, jaws and teeth), so don't swim in the corexit water they are STILL dumping into the gulf every night and spraying it on homes and pools. This month 9 mo old twins died immediately after a MMR shot. Blame Rockefeller, Kissinger, and now Bill Gates for these toxic vaccines meant to depopulate us. Ted Turner approves, but it's ok for HIM to have 7 children and who knows how many grandchildren. DON'T BELIEVE ME? LOOK FOR YOUTUBES OF DRS. BLAYLOCK, MERCOLA, LEONARD HOROWITZ ON THESE VACCINES. SEARCH "DAVID ROCKEFELLER +VACCINE" or population control. They've been innoculating 3rd world countries for years. Now it's our turn. Same for our soldiers. How do you think they got Gulf War Syndrome? mandatory anthrax shots.

October 30 2010 at 9:48 PM Report abuse rate up rate down Reply

All we all stupid or what ? Hasn't it been proven without any doubt that the banks are run by thieves and robbers waiting for an opportunity to scam anyone and everyone if the get half a chance. Americans are without doubt the most gullible people on earth because they STILL believe that Corporations, whether banks, brokerage houses, insurance companies, etc, have their best interest at heart. NOTHING can be further from the truth. They CANNOT believe that corporations are run for PROFIT ONLY without outsider interest considered, and they REFUSE to believe that the government is a non-profit enterprise that SHOULD be helping to better the lives of ALL citizens. I will NEVER trust ANY company that puts profit before everything else and I am fully aware that they WILL scam me if I allow it to happen. Europeans watch us in head shaking awe because of our stupidity and lack of ANY worthwhile safety net for WE THE CITIZENS that pay 100% of the bill for EVERYTHING the government touches or funds. Yet those same Americans believe that NONE of the money they pay in taxes should help pay for their welfare be it Social Security or Health Care or Education. So why are we the most backward leaning developed nation on earth ? Its simple really. We are basically uneducated, stupid and dumb,and we allow and condone Major Global Corporations, with alligence to none,to continue to shaft us and keep doing so unhendered because we were stupid enough to buy their line then swallow it with the hook attached. Now we are in the process of being reeled in and we are being told to cut the minimum wage so we can compete with the slave labor in Asia and South America. Will the TEA party have an answer for THAT ?? To my mind...NOT LIKELY.

October 28 2010 at 11:21 PM Report abuse rate up rate down Reply

Maybe all you idiots should move your money to a bank that did not take bailout money.

October 28 2010 at 5:02 PM Report abuse rate up rate down Reply

Banks do not make money by foreclosing on laons. The last thing they want is a house they can not sell. They are not in the ral estate business . They are in the business of leading money.What is clear is ,many corners were cut by all,sellers, buyers , brokers, banks, etc.. Many owners of homes they rent are collecting rent and are not paying the bank. If you rent and the house is foreclosed on, file a civil suit.

October 28 2010 at 4:57 PM Report abuse rate up rate down Reply
1 reply to krazzicraig's comment

Please remember that should a bank foreclose on a property WITH equity over aned above the amount owed, (and it happens all the time) they KEEP the difference. Trusting a bank is like trusting a rattle snake.

October 28 2010 at 11:25 PM Report abuse rate up rate down Reply

Sure we made mistake but as long as made huge profits that big goal.

October 28 2010 at 4:42 PM Report abuse rate up rate down Reply
juan birge

I don't think I ever in my wildest dreams thought people could be so stupid....Can anyone please give me one example of a house foreclosed on where the payments were paid as agreed !! How do you feel when you loan someone $20 and they don't pay you back ? Can you grasp the concept of loaning someone hundreds of thousands of dollars and they don't pay...You people are smarter than this , surely...

October 28 2010 at 4:25 PM Report abuse +1 rate up rate down Reply
1 reply to juan birge's comment

Actually my grandmother (who had a loan from Wells Fargo) worked with them to 'restructure' her mortgage because the person who owned the house before was 3 years behind on taxes and it fell on her along with the ARM shooting up. Payments went from $700 to $1600 a month, but she still never missed a payment even though she missed several meals (who do you think provided those? Me!). So they told her they were putting the taxes on the end of the loan and (with the credit councilor on the phone recording the 3-way conversation) they told her not to make payments for 6 months since she had 'overpaid' the last few months and didn't technically owe a payment for 6 months. The credit councilor thought this was odd, but she confirmed it was correct and he had it on record so she suggested that my grandmother do as they said. 5 months later, Wells Fargo started proceedings to foreclose without notifying her of any payment being past due. When asked about the previous conversation, they claimed no knowledge. Then her credit councilor was told by higher ups that he worked for a subsidiary of Wells Fargo and could no longer help her. They messed up her paperwork so bad that they can't even find the deed. They sent a copy to the court as proof of ownership, but the court rejected it because it was an obvious forgery. Banks are the very devil and not EVERYONE just stopped paying. Many people were tricked one way or another. The ARM's were one way they suckered low income folks in who wanted a piece of the dream, or people who just didn't know any better.

October 29 2010 at 10:28 PM Report abuse rate up rate down Reply

The State of Arizona is in bed with the Banksters of America. They have been reluctant to do anything for the homeowner. In this State we have what they call a Non Judicial State. The banks can do a foreclosure with out going through a judge. I really bewilders the mind, giving what is going on, that the state does not step in and do what is Right, which is, make it mandatory for all foreclosures to be reviewed by the courts. But the State of Arizona took a Credit Line out with Bank of America to fulfill their completion of their budget. For you see, the State of Arizona was in a State of bankruptcy. Oh here comes the Night in Red White and Blue armor too the rescue. So do you think for one moment that the State of Arizona is going to bite off the hand that is feeding them? Hell NO!! So we the people who are disillusioned to the fact that the state officials that were voted in and took the oath to Serve and Protect the people of Arizona are so uninformed. We are in Trouble ... Let us not forget .. it is not just the homeowner who can not afford the home for what ever reason. be it loss of job or cut in pay or their fraudulent ARMS mortgage adjusted to the point of Ridiculous, it is all so about the homeowner who is doing everything Right. Notes lost or destroyed due to the incompetance of these Banksters, the good home owner will never be able to sell his home or get clear title if they were to pay it off. This is no Bullcrap this is how it is ...... The back room dealing on this mess is going to be interesting to see how it plays out. We the people are not invited in and nobody from the press is alowed in. So what comes out of this mess are going to be New Rules made in favor of the Banks and Investors. Mark my Word. Look out!!!!

October 28 2010 at 4:16 PM Report abuse rate up rate down Reply

Under Section 1010, Title 18 of the United States Code knowingly falsifing a document involving a Federally insured mortgage will net you 3 to 5 in a Federal Slammer....500 docs a day would be,oh say, 1500 YEARS minimum...

October 28 2010 at 4:09 PM Report abuse +1 rate up rate down Reply

Isn't that nice. Figures. I was Renting a home that was foreclosed on by Wells Fargo. During that period we had received a Loan approval to purchase the property during a short sale. Wells Fargo Pre-approved the Loan and also approved the short sale price. One week before the closing they dropped it. Not only did they follow through on the foreclosure, they never even paid for all the repairs that we did on the home/property that was requested by the Property Appraisal and Wells Fargo to close on the property. I hope they get what's coming to them. I wish I had the money for a good attorney. Everyone is wondering why this economy is like it is. There's a good example. No compassion. Nothing but crooks!!

October 28 2010 at 4:03 PM Report abuse rate up rate down Reply
1 reply to Michael's comment

SUCKER. Your mistake was in trusting Wells Fargo. But hey...they got free upgrades. Did you get a 'thank you' note for that ?

October 28 2010 at 11:29 PM Report abuse rate up rate down Reply