Wells Fargo Computer Glitch Caused Even More Home Foreclosures
The computer glitch that Wells Fargo announced in August affected more homeowner than originally reported. After a thorough investigation, the bank found an internal underwriting error affected a total of 870 mortgage loan recipients, causing 545 of them to lose their homes.
Between April 13, 2010 and October 20, 2015, Wells Fargo’s software miscalculated attorney’s fees that may have qualified certain home loans to be adjusted under the U.S. Department of Treasury’s Home Affordable Modification Program. The modified payment structure may have improved borrowers’ ability to pay for their homes. The original report showed 625 buyers were affected by the glitch, and approximately 400 experienced foreclosure. The new report covers customers from March 15, 2010 to April 30, 2018.
The bank reserved $8 million for customer compensation, and has not updated that figure since the new discoveries. Tom Goyda, a spokesman for Wells Fargo, says the bank has contacted most of the customers affected by the glitch to discuss remediations. Customers also have the option to go through a no-cost mediation process, if they prefer.
“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,” said Goyda.