625 Wells Fargo Customers Denied Loan Modification Because Of Glitch — Homes Were Foreclosed
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.
Wells Fargo said in a statement that it was "very sorry that this error occurred" and said it was "providing remediation" to the affected customers.
A spokesperson for the bank "there's not a clear, direct cause and effect relationship between the modification" denials and foreclosures, but confirmed customers who were denied modifications lost their homes.