Wells Fargo to Be Focus of Ohio Foreclosure Fraud Probe
“These people think they can play by a different set of rules.”
“It’s not just individuals who signed flawed affidavits. It’s a business model designed on fraud.”
Wells Fargo & Co. will be a focus of an investigation into foreclosure practices, Ohio Attorney General Richard Cordray told Bloomberg Television after the lender said it found flaws in court documents.
Wells Fargo said yesterday that it would submit supplemental affidavits to courts in about 55,000 foreclosure proceedings after finding some statements “did not strictly adhere to the required procedures.”
“These people think they can play by a different set of rules,” Cordray said in an interview today on Bloomberg Television’s “InBusiness with Margaret Brennan.” “It’s not just individuals who signed flawed affidavits. It’s a business model designed on fraud.”
Teri Schrettenbrunner, a spokeswoman for San Francisco- based Wells Fargo, said in an e-mail that none of the paperwork problems have led to foreclosures that shouldn’t have otherwise occurred and the problems aren’t related to the quality of loan data.
“We have chosen to submit supplemental affidavits out of an abundance of caution,” she said. “We intend to be responsive to General Cordray’s inquiries and look forward to addressing his concerns.”
Head over to Bloomberg to read more with video here…
No widespread problem here, right Wells?