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AFR Statement: Wells Fargo Must Compensate Wrongfully Evicted Homeowners

Submitted by on November 6, 2018 – 3:19 pm

FOR IMMEDIATE RELEASE

Nov 6, 2018

CONTACT:

Carter Dougherty, carter@ourfinancialsecurity.org, (202) 251-6700

Wells Fargo Must Compensate Wrongfully Evicted Homeowners

In August 2018, Wells Fargo revealed that a problem with their computer system led to improper modification denials that caused at least 400 homeowners to lose their homes to foreclosure. Nearly three months later, Wells Fargo filed a new disclosure that shows that more homeowners were affected. Wells Fargo’s updated numbers reveal that approximately 870 homeowners were improperly denied modifications, and 525 homeowners lost their homes to foreclosure as a result.

“Wells Fargo must complete a comprehensive review that identifies every single homeowner affected by this problem, and must adequately compensate them for the serious harm they have suffered as a result of losing their homes to wrongful foreclosure or paying for a more expensive modification,” said Linda Jun, senior policy counsel at Americans for Financial Reform. “Until proper compensation is provided and Wells Fargo demonstrates that it has reformed its systems and practices to prevent problems like this in the future, Wells Fargo’s apologies are hollow and insufficient.”

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