Hundreds of people mistakenly had their homes foreclosed upon because Wells Fargo software incorrectly denied them mortgage modifications, the bank indicated in published reports. . .
The revelation happened this week through a regulatory filing by the bank, reports stated. Wells Fargo also indicated it has set aside $8 million to compensate customers affected by the so-called glitch. . .
According to reports, Wells Fargo stated that a computer error affected certain accounts that were in the foreclosure process between April 2010 and October 2015. Then the issue was reportedly corrected.
In all, an estimated 625 customers were incorrectly denied a loan modification or were not offered one even though they were qualified, the report stated. About 400 customers had their homes foreclosed upon. . .
In June, the federal Securities and Exchange Commission accused the bank of “using complex financial investments to take advantage of mom-and-pop investors,” according to CNN. Wells Fargo has reportedly neither admitted nor denied the SEC’s allegations and is cooperating with the investigation. (Read more from “Wells Fargo Says Hundreds of Customers Lost Homes to Foreclosure Due to Computer Glitch” HERE)