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Wells Fargo admits to foreclosure paperwork problems

Wells Fargo, the nation's largest U.S. home lender, on Wednesday acknowledged mistakes in the preparation of documents for foreclosures, after denying for weeks that it was affected by the problems that forced other major lenders to temporarily freeze foreclosures.

The company said in a statement that in some cases foreclosure affidavits "did not strictly adhere to the required procedures." It said that it has begun submitting supplemental affidavits for 55,000 foreclosures that are pending in 23 states. Wells Fargo said it expects the process to be completed by mid-November.

"The issues the company has identified do not relate in any way to the quality of the customer and loan data; nor does the company believe that any of these instances led to foreclosures which should not have otherwise occurred," the company said in a statement.

Bank of America, J.P. Morgan Chase, Ally Financial, PNC Bank and Goldman Sachs' Litton Loan Servicing have recently put some foreclosures on hold while they review their paperwork, though some of those foreclosures have since resumed.

As recently as last week, Wells Fargo CEO John Stumpf said that the company is "confident that our practices, procedures and documentation for both foreclosures and mortgage securitizations are sound and accurate."

In a deposition, however, Wells Fargo employee Xee Moua described the sort of "robo-signing" that has raised questions about the legitimacy of foreclosures at other firms.

By Ariana Eunjung Cha  | October 27, 2010; 6:01 PM ET
Categories:  Housing  
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It seems in today's version of the wild west that the road agents are the ones using the stagecoach to make their getaway.

Posted by: Anonymous | October 27, 2010 6:54 PM | Report abuse

Wow! So, now instead of ordering a National Foreclosure Moratorium to provide time for complete investigations and prosecutions of these criminal activities, the Federal/State Governments are going to allow these crooks time to create, forge and backdate the documents needed to proceed with stealing as many homes as possible to try to offset the securities fraud and money that they own to the investors for the toxix mortgages. This is the scandal of the century and the banksters are getting away with it without a fight. First they denied that there were any problems. Now, that their fraud has been exposed, they are being allowed to "fix" the documents. Only in America!

Posted by: Xfactor | October 27, 2010 6:58 PM | Report abuse

And I know of at least one case where WF did not pay property taxes and then tried to blame the borrower for not paying. And this was 15 years ago. How much other paperwork have they done that is questionable? Time for the state attorney generals to listen to any complaint about WF or other and if there appears to be any degree of correctness to what a borrower says, ensure the bank pays.

Posted by: gmclain | October 27, 2010 8:44 PM | Report abuse

They are common thieves.

They overcharge, over-collect interest on customers who have timely made payments for decades.

Yes, they definitely need to collect 20+% interest from customers who have banked with them for decades, payed their bills.

Why has crime become legal for bankers in this country.

Credit default swaps, a legitimate investment vehicle.

More like sophisticated financial crime for friends who don't let friends get incarcerated, even when they steal billions.

Posted by: Anonymous | October 27, 2010 9:03 PM | Report abuse

I have been a customer of WFB for eleven years. In the last two years they have lied to me, pressured me, promised me a refinance only to pull the rug out at the 11th hour on a technicality, lied to me about not accepting bailout money, bla, bla, bla.

So I closed my account today. They are scum.

Posted by: Anonymous | October 27, 2010 9:10 PM | Report abuse

" securitizations are sound and accurate." I for one can testify to this be a totally inaccurate statement.

We have been sent the "wrong letter" for why our mortgage modification was being rejected. Been told that we have not provided the requested documents - when we have document proof that we have. Been told we don't qualify because we can't pay the modified amount - despite having successfully been doing so as part of the mortgage modification trial period for 6 months (though no one requested our latest financial documents). And finally, was just told that they could not get hold of us to discuss the modification, so they were rejecting us - Wells Fargo's only attempt to contact us was a "robot" call the evening before they sent out the letter saying they could not contact us. Additionally, we have been unable to contact our Wells Fargo representative because her voice mailbox is full and we can't even leave a message (no email contact information provided)!

Sound and accurate? Not by any stretch of the imagination. Self serving and irresponsible yes!

We are working hard on our home businesses to self-employ ourselves since I lost my job in 2008. All we are asking for is some time and a little help, just as we the taxpayer gave the banks. But, we have a mortgage that is not "under water" and it is a much better risk return ratio for the Wells Fargo to foreclose on us than if we were "under water". All their actions are indicative of moving forward to that end and not to provide us with an opportunity to get back on our feet.

What was actually said "Just push it through as fast as possible - I have my bonus to earn!"

Posted by: PeterR | October 27, 2010 9:17 PM | Report abuse

Not a surprise. Wells Fargo is about the sleeziest company out there.

Posted by: Anonymous | October 27, 2010 9:22 PM | Report abuse

Uh huh. .... Go on .... Do Tell ....

Soylent Green is people.... Ya' don't say .... um hmm ... carry on. We have all the time in the world.... Take your time.

Posted by: Anonymous | October 28, 2010 2:57 AM | Report abuse

55 thousand foreclosures???

Posted by: SpotBanks | October 29, 2010 12:29 AM | Report abuse

Foreclosure Frauds, Wells Fargo-the Fox in Charge, and Victimization

I believe that Wells Fargo’s announcement about refiling 55k foreclosures is because covering up wrongful foreclosures is no longer effective. Res ipsa loquitur foreclosure frauds occurring here in Louisiana involving Wells Fargo, Freddie Mac, certain foreclosure mills, and certain corrupt judges make it apparent that Wells Fargo CANNOT be trusted to fix its foreclosure wrongdoings, no more than an addict can be trusted to self-reform.

Mortgage lenders are not required to know laws - attorneys are! Most of the time, the attorneys made severe errors - sometimes intentionally, since errors help keep the billable tab going, and commit the very frauds that provide basis, defenses, and reasons to attempt negotiating mortgage contracts.

Compare: blighted neighborhoods and foreclosure deed conveyances to non-existent mortgage lenders; bankruptcy "Lift Stay" motions that "lack standing," and names on "proof of claims" different from 'lift stays' "movers"; and illegal property deeds.

Also, foreclosure lawyers have failed to "effect service," failed at various substantive Civil Procedure requirements which make it not lawful to proceed with that lawyer's case until those errors are corrected. As such, homeowners are not to be blamed for refusing to cooperate with erroneous and fraudulent confiscation of their homes!

Often, foreclosure delays are because of the lawyers, but the lawyers keep that fact from clients. It is usually always foreclosure lawyers' serious mistakes, errors, and frauds that supply reasons, defenses, and basis for anyone with a brain / anyone who prefers to not be homeless to attempt renegotiating his or her mortgage contract.

Also, property owners seeking debt reorganization through Chapter 13 Bankruptcy are not to be blamed for contesting a false "proof of claim" or false "Lift Stay" motion. As such, countless foreclosure lawyers owe a lot of money to their clients for fatally botching foreclosure cases.

Scoffer spew anger about others living 'rent free' have absurd responses about 'White Collar foreclosure fraud' - which includes confiscating distressed properties via falsified court bankruptcy and state court pleadings.

Samples of Wells Fargo, Freddie Mac, Lehman Brothers foreclosure debt collector attorneys (foreclosure mills), and judicial corruption are posted on my website. Like the matter of the “Bailey" property foreclosure filed under Lehman Brothers, but the Hurricane Katrina insurance money was demanded by Wells Fargo. Also, posted is how Wells Fargo (WF) filed a false IRS form 1099-A despite that Wells Fargo did not foreclose.

Posted by: lawgrace | October 29, 2010 10:18 AM | Report abuse

Wells Fargo lied to us about making fraudulent mortgage loan in the past. Wells Fargo is still lying about not committing mortgage fraud and wrongful foreclosure.

Wells Fargo made us a fraudulent mortgage loan, committed fraud on the court and wrongfully foreclosed our home.

Wells Fargo teamed up with its attorneys and spent last 4 years in Nevada courts defending its appraisal and mortgage fraud.

Wells Fargo and its attorneys knew it’s Category C Felony to make mortgage loan based on fraudulent appraisal.

Wells Fargo and its attorneys knew it’s Category C Felony to foreclose home based on fraudulent appraisal.

Wells Fargo chose to violate the law and chose to defraud us.

Please sign the Petition on our website
Let our voice to be heard!

Posted by: Anonymous | October 31, 2010 1:04 PM | Report abuse

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