Joining other national lenders such as GMAC, Bank of America and Chase, Wells Fargo & Co. says it has identified instances where final reviews of foreclosure affidavits, as well as aspects of the notarization process, did not adhere to the letter of the law.
In turn, the company will immediately begin submitting supplemental affidavits for approximately 55,000 foreclosures that are pending before courts in 23 judicial foreclosure states. Wells Fargo hopes to complete the process by mid-November, subject to state and local requirements.
The issues ‘do not relate in any way to the quality of the customer and loan data,’ Wells Fargo said in a statement, adding that it does not believe the flawed affidavits have led to foreclosures ‘that should not have otherwise occurred.’
The company reaffirms that it does not plan to institute a foreclosure moratorium.
"At Wells Fargo, foreclosure is a last resort," says Mike Heid, co-president of Wells Fargo Home Mortgage. "In September 2010, borrowers who have completed foreclosure were, on average, 16 months delinquent on their payments. When all options have been exhausted, we believe foreclosures should not be delayed."
The company additionally states that appropriate documents for loans in foreclosure are assigned in compliance with local laws and investor requirements; legal documents related to securitizations have appropriately transferred ownership; and its $1.3 billion reserve continues to represent its best estimate of its repurchase liabilities as of Sept. 30.
SOURCE: Wells Fargo