Wells Fargo foreclosed on homeowners who had a chance to keep their homes
Wells Fargo & Co. foreclosed on 400 homeowners after improperly denying them loan modifications that could have allowed them to stay in their homes, the bank said in a regulatory filing Friday.
From 2010 to 2015, amid the recovery from the housing bust that caused millions of Americans to lose their homes, the bank made miscalculations when determining whether borrowers qualified for loan modifications.
That led the San Francisco bank to improperly deny modifications to 625 borrowers in the foreclosure process. The bank eventually completed foreclosure on about 400 of them, according to Friday’s filing — a revelation that could spark fresh anger over the bank’s practices.
The bank Wells Fargo said it has set aside $8 million to compensate customers, which works out to an average of $12,800 per borrower. Wells Fargo spokesman Tom Goyda said the bank has not disclosed how much individual borrowers will get.