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Parsing statements by Citigroup and Wells Fargo on the foreclosure issue

While some of the big lenders have declined to comment how or if they are affected by the paperwork problems that forced Ally Financial and J.P. Morgan Chase to freeze foreclosures, two have issued statements on the matter.


Here's what Wells Fargo had to say:

Wells Fargo policies, procedures and practices satisfy us that the affidavits we sign are accurate. We audit, monitor and review our affidavits under controlled standards on a daily basis. We will stand by our affidavits and, if we find an error, we will take the appropriate corrective action.
As a standard business practice we continually review, reinforce and strengthen our policies and procedures.

And Citi's view:

Citi reviews document handling processes in our foreclosure group on an ongoing basis, and we have strong training to ensure that appropriate employees are fully aware of the proper procedures. We require annual training for our foreclosure employees on the proper execution of affidavits, including having personal knowledge of the information in the affidavit and requirements for signing in front of a notary. In addition, we require annual certification of our employees' understanding of the proper procedures, and managers are accountable for regularly reviewing files to make certain that our employees comply with the procedures. Finally, foreclosures are monitored to make certain that staffing is adequate to review the affidavits properly.

Wells Fargo's response is stronger. It states outright that the company believes its affidavits are "accurate" and that its procedures are satisfactory, but the last sentence is puzzling. The company stands by its affidavits -- presumably meaning that it isn't planning any withdrawals and resubmissions -- but then it talks about taking corrective action if there are errors.

Citi's statement refers a lot to the processes for handling affidavits: the strong supervision, annual training and certification and reviews. But it stops short of saying that it believes it does not have the same problems documented by Ally and J.P. Morgan. It's also striking that the company does not say anything about what the company believes about the factual accuracy of the affidavits.

By Ariana Eunjung Cha  | October 1, 2010; 4:17 PM ET
Categories:  Financial regulation, Housing, U.S. Economy  
Save & Share:  Send E-mail   Facebook   Twitter   Digg   Yahoo Buzz   Del.icio.us   StumbleUpon   Technorati   Google Buzz   Previous: Connecticut halts all foreclosures for all banks
Next: Fannie, Freddie join forces with regulators to remedy foreclosure paperwork problem

Comments

Making error after error Wells Fargo is about to steal the equity we have in our home. We had an excellent credit till I started a loan amendment after I was told that it would not affect our credit. When we bought the house we put down $110K. I refinanced from 30 years to 15, about three years ago and, after 6 months of unemployment and years of underemployment I just wanted to refinance, but the numbers don't work and, even after the help they got with our tax dollars they just see us has a number and put us all in the same situation. They told us to get help from one agency recommended by the Government web site but again, we were not a priority because they had other people in a worst situation so they just complicated more the situation. We were told to make arrangements with the credit cards but I refuse to do that because I want and will pay everybody we own till the last cent. On October, 5 Wells Fargo plans to start the foreclosure acceleration and steal our years of hard work that were wrongly invested in our house. They spend million on Hispanic media (I worked on newspaper, radio and TV)but are about to put an Hispanic Familily in the street. WELLS FARGO BANK ... WE ARE NOT JUST A NUMBER. I HAVE BEEN MARIED FOR 18 YEARS WITH MY WIFE JEANNINE AND I HAVE TWO SONS, EMILIO WHO IS 11 YEARS OLD AND PAULO WHO JUST TURNED 8. WE ALSO HAVE A LITTLE CHIHUAHUA NAMED LULU. SHAME ON YOU WELLS FARGO.
Jaime L Furtado

Posted by: Anonymous | October 3, 2010 1:06 AM | Report abuse

Wells Fargo and its army of attorneys knew it is Category C felony to make mortgage loan and foreclose home based on fraudulent appraisal. However they chose to defraud us by foreclosing our home based on fraudulent appraisal and its promise to rescind our mortgage loan and help us to recover all of our financial loss if we prove appraisal fraud.

Wells Fargo committed prosecutable crime against us. We lost our home. Something is wrong with this picture.

Here are the facts.

1. it is illegal for Wells Fargo to make mortgage loan to us based on hugely inflated appraisal.

Fact: - Wells Fargo's fraudulent appraisal valued our home at $718,000

- Wells Fargo's own review appraisal valued our home at $475,000

- Nevada Attorney General's office suspended the appraiser's license for committing appraisal fraud on our home.

- Nevada Appraiser Licensing Board mandated the appraiser to complete appraisal fraud course before regaining his real estate appraiser license.

- Nevada Revised Statue NRS 205.372 states that it's category C felony to make mortgage loans based on fraudulent appraisal.

- Cases of Attorney General's indictments against attorneys, loan brokers for teaming up make fraudulent loans to defraud homeowners.

2. it is illegal for Wells Fargo to wrongfully foreclose our home based on fraudulent appraisal and mortgage loan.

You can find all the facts on our website. www.wellsfargomortgagefraud.com.

Posted by: WellsFargoFraudVictim | October 3, 2010 10:57 PM | Report abuse

with help from my lawyer&wellsfargo bank they tricked me&my family out of our home of 28 yr's.no help,no hope!!

Posted by: Anonymous | October 5, 2010 8:13 AM | Report abuse

Can you tell it's an election year?
Borrowers are in default at historic levels. We do not live in the era of Ma & Pa Kettle. Loan payment histories are maintained on computers, so it makes sense for computer records to be reviewed to determine amounts owed. This "fix" is going to worsen the housing crisis and prolong the decline in housing prices.

Posted by: Anonymous | October 6, 2010 6:52 AM | Report abuse

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