Wells Fargo Foreclosure ‘Fraud’ Manual Under Fire
Wells Fargo foreclosure manual under fire
Wells Fargo created an elaborate guide for how to produce missing documents to foreclose on homeowners, according to a lawsuit that has caught the attention of state and federal regulators.
The bank denies wrongdoing, but the allegations rekindle claims that lenders, including Wells Fargo, used forged and shoddy paperwork during the recession to quickly foreclose on struggling homeowners, a practice known as “robo-signing.” Those charges led to a $25 billion national mortgage settlement that was supposed to put an end to such abusive practices, but bankruptcy lawyer Linda Tirelli says nothing has changed.
In the course of defending a New York homeowner facing foreclosure, Tirelli said she found a 150-page manual instructing Wells Fargo lawyers how to process foreclosures when a key document, known as an endorsement, is missing. Lenders need endorsements to prove that they own the mortgage, before they can foreclose on a homeowner.
The manual, reviewed by The Washington Post, outlines steps for obtaining the missing document after the bank has initiated foreclosure proceedings. It also lays out what lawyers must do in the event of a lost affidavit or if there is no documentation showing the history of who owned the loan, paperwork the bank should already have.
“This is a blueprint for fraud,” said Tirelli, who attached a copy of the manual as evidence in the lawsuit filed in U.S. District Court in White Plains, N.Y. “The idea that this bank is instructing people how to produce these documents is appalling.”
Rest from WAPO here…
Housing WireWashington Post-18 hours agoWells Fargo created an elaborate guide for how to produce missing documents to foreclose on homeowners, according to a lawsuit that has …
The Real Deal Magazine (blog)New York Post-Mar 15, 2014The attorney general is investigating allegations made in a federal court case that Wells Fargo has set up detailed internal procedures to …
New York Post-Mar 12, 2014A Wells Fargo spokesman denied that the manual could be used to order improper documents. “No note is endorsed without the proper …
ThinkProgress-Mar 13, 2014Wells Fargo created a manual for its foreclosure attorneys that included instructions on “a procedure for processing [mortgage] notes without …
The Voice of Russia-Mar 14, 2014Here is a digest of some interesting reports for you to check out. Wells Fargo created a manual for its foreclosure attorneys that included …
Pierce County Herald-Mar 14, 2014A Wells Fargo spokesman denied that the manual could be used to order … with foreclosure documents at a Wells Fargo office in Minnesota.
American Banker (subscription)-Mar 16, 2014Wells Fargo’s Foreclosure Process Draws New Fire … an in-house, how-to manual for producing bogus documents to justify foreclosures.