Wells Fargo has finally admitted to errors involved in its foreclosure process, according to a company press release.
The top mortgage lender in the nation said it identified “instances where a final step in its processes relating to the execution of the foreclosure affidavits (including a final review of the affidavit, as well as some aspects of the notarization process) did not strictly adhere to the required procedures.”
But noted that the issues the company identified probably didn’t lead to any foreclosures that shouldn’t have occurred anyways.
As a result of the findings, Wells Fargo has elected to submit supplemental affidavits for approximately 55,000 foreclosures, which are pending in 23 judicial foreclosure states.
“The process of submitting supplemental affidavits will begin immediately with a goal of having this process completed by mid-November 2010, subject to state and local requirements,” the company said in a release.
“If the company is unable to complete an individual court filing by the designated court review date, it will request a court extension to assure the file contains a supplemental affidavit before the judge rules on the case.”
Wells Fargo also affirmed that it does not plan to institute a moratorium on foreclosure sales.
“From January 2009 through September 30, 2010, Wells Fargo has successfully completed 556,868 mortgage loan modifications, which includes $3.5 billion of principal forgiveness, and has refinanced approximately 1.9 million mortgage loans,” the company added.
Admittedly, Wells has been one of the more prudent mortgage lenders out there, and their loan portfolio reflects that.
Only two percent of their home loans were considered subprime at loan origination, and 92 percent of its mortgage servicing portfolio is current.
Earlier this week, Bank of America also admitted to foreclosure process failings, but expressed that things like misspelled names and incorrect addresses didn’t actually lead to “wrongful foreclosures.”