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.
Ariana Eunjung Cha
| October 1, 2010; 4:17 PM ET
Categories: Financial regulation, Housing, U.S. Economy
Save & Share: Previous: Connecticut halts all foreclosures for all banks
Next: Fannie, Freddie join forces with regulators to remedy foreclosure paperwork problem
Posted by: Anonymous | October 3, 2010 1:06 AM | Report abuse
Posted by: WellsFargoFraudVictim | October 3, 2010 10:57 PM | Report abuse
Posted by: Anonymous | October 5, 2010 8:13 AM | Report abuse
Posted by: Anonymous | October 6, 2010 6:52 AM | Report abuse