Published , by Charles Singletary Jr
Published , by Charles Singletary Jr
It turns out a specific glitch in one of Wells Fargo's tools caused roughly 400 people to face foreclosure. A mortgage loan modification underwriting tool caused about 625 customers to be denied loan changes or offers when they otherwise would have qualified and, due to this, around 400 Wells Fargo customers lost their homes.
Engadget reports that the discovery was revealed via an SEC filing from the bank and also shared that the company was recently fined for issuing mortgage loans with incorrect income data, adding to a string of other transgressions in recent years. The mortgage error affected accounts between April 2010 and October 2015.
Wells Fargo told CNN Money that it is "providing remediation" to affect customers, but it's not clear what the scope of this remediation will be. Stay tuned to Shacknews for additional updates.