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Wells Fargo Says Hundreds of Customers Lost Homes After Computer Glitch (cnn.com)
Hundreds of people had their homes foreclosed on after software used by Wells Fargo incorrectly denied them mortgage modifications. From a report: The embattled bank revealed the issue in a regulatory filing this week and said it has set aside $8 million to compensate customers affected by the glitch. [...] Wells Fargo said the computer error affected "certain accounts" that were undergoing the foreclosure process between April 2010 and October 2015, when the issue was corrected. About 625 customers were incorrectly denied a loan modification or were not offered one even though they were qualified, according to the filing. In about 400 cases, the customers were ultimately foreclosed upon.
The reason they are doing it now is because they are raked through the coals for this kind of abuse:
That's not what happened. I can't believe we're barely a decade past the financial cataclysm of 2007-08 and even after stacks of books have been written, a dozen ore more documentaries and a couple of blockbuster hollywood films (one that won an oscar), we still have people who don't understand what happened with the housing crash, and why the blame is not on the borrowers any more than you would blame the victim of a violent mugging.
The amount of document fraud perpetrated by Wells Fargo and their secondary-mortgage customers and servicers was just unbelievable. I recommend some of the investigative journalism of an economist and former bank executive named "Yves Smith", who writes the Naked Capitalism blog. Without her work, even these meager attempts at holding the banks accountable would not have been possible. Her book, ECONNED is taught in schools now.
You are welcome on my lawn.
There was a time when bank robbers went to jail.