Wells Fargo finds 870 mortgage loan modifications denied in error

|About: Wells Fargo & Co. (WFC)|By:, SA News Editor

Wells Fargo (WFC -0.5%) discloses that about 870 mortgage customers were incorrectly denied a loan modification or repayment plan due to a calculation error that overstated estimated attorneys' fees.

Of those 870 customers, about 545 resulted in foreclosure.

The error was found when WFC expanded a review of its mortgage loan modification underwriting tool. The errors occurred between March 15, 2010 and April 30, 2018.

WFC said it has contacted a majority of customers affected to provide remediation and the option of no-cost mediation with an independent mediator; it's continuing attempts to contact the rest of the affected customers.

"This effort to identify other instances in which customers may have experienced harm is ongoing, and it is possible that we may identify other areas of potential concern," the company said in its 10-Q filing for Q3 2018.

Previously: Wells Fargo's sees legacy loan divestments tailing off by mid-2019: FT (Nov. 6)

Previously: Wells Fargo behind on auto insurance remediation (Oct. 30)

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