#Wells fargo mortgage calculator software#

Many of the individuals who received these letters and checks from Wells Fargo feel that the offered money is not enough to compensate for all the harms that come with foreclosure. Mediators are generally former judges or practicing attorneys. Wells Fargo doesn’t make clear that they may have an attorney present during the mediation. If the person isn’t satisfied with the amount, Wells Fargo generally offers to submit to independent mediation to determine if the person should get more money. The letters typically say that the person was affected by the calculation error, and offers them a check in the range of $10,000 as a gesture of good will. Wells Fargo has already sent letters and checks to many individuals who it admits were affected by the loan modification error. Wells Fargo Sends Letters and Checks to Wrongfully Foreclosed Homeowners Ultimately, 545 homes were foreclosed on, when a mortgage modification should have been offered, according to Wells Fargo’s own disclosures.

#Wells fargo mortgage calculator software#

Wells Fargo did not comply with this law, it says, due to a software glitch that affected 870 mortgages that were in default. In November 2018, Wells Fargo revised its estimate, announcing that the miscalculation actually affected 870 homes that were going through foreclosure between March 15, 2010, and April 30, 2018.Īs Wells Fargo explains, two federal government programs require Wells Fargo and other lenders to offer loan modifications to keep people in their homes when they are in default, rather than going through the expensive process of foreclosure. Wells Fargo says the “error” affected 625 homes that were “in the foreclosure process between April 13, 2010, and October 20, 2015.” The securities filing says that Wells Fargo discovered a “calculation error” in its automated software for calculating whether a borrower should be offered more favorable loan terms in lieu of foreclosure. Wells Fargo Admits Loan Modification Error, Wrongfully Foreclosed On HomesĪ quarterly filing with the Securities & Exchange Commission in August 2018 revealed that Wells Fargo made an “error” in denying mortgage modifications to hundreds of borrowers. The criminal law counterpart to conversion is “theft.” The complaint also alleges that Wells Fargo engaged in “conversion” by taking away homes that it wasn’t legally entitled to foreclose on. The complaint concludes that Wells Fargo acted negligently in denying loan modifications to hundreds of borrowers, at a time they were struggling, and failed to uphold its duty under the Home Affordable Housing Program (HAMP) to issue modifications to all troubled homeowners who qualified. And that as a result, hundreds of borrowers suffered grave consequences of the improper denials, including wrongful foreclosures, serious damage to their credit, and other harmful effects.

The lawsuit also alleges that Wells Fargo knew of the error in 2015 but failed to disclose it for nearly three years. The class action lawsuit we filed alleges that Wells Fargo failed to implement and maintain the proper software and protocols to correctly determine whether a mortgage modification was required under federal regulations. Class Action Lawsuit: Wells Fargo Loan Modification Error Caused By Wells Fargo's Negligence