Wells Fargo disclosed on Friday that it had erroneously foreclosed on 400 homes due to a malfunction with its underwriting tool.
According to a filing last week, between 2010 and 2015, 625 consumers were disqualified improperly for loan modifications, with the bank completing foreclosures on 400 of them. The affected consumers were facing foreclosure, and in federal housing programs. According to the bank, it has allotted $8 billion to help homeowners who were impacted.
The admission builds on two years of scandal, beginning in 2016 with accounts that had been fraudulently opened by staff. In 2018 alone, the bank has been hit with more than $3 billion in fines and penalties, including for abusive mortgage practices, and for its alleged contribution to the crisis.
If you believe you will have difficulty making your mortgage payments, or are already missing payments, contact your servicer as soon as possible—many have assistance and modification programs. Consider contacting a counselor, as well. (Find an approved counselor using the Consumer Financial Protection Bureau’s (CFPB) locator.)