Ever notice how these “errors” and “glitches” only ever seem to work in their favour? Funny, that.
Is it 1987 again? When did you last hear anybody use the word “computer” in a conversation, much less think they could escape responsibility by blaming one for a problem?
People don’t talk about “computers” in 2018. People talk about servers and laptops and smartphones and point-of-sale devices. Everything is a computer, so we don’t need the word anymore.
Translation: We learned from Volkswagen that you can fire and jail the engineers and maybe one middle manager, then give everyone at the top of the chain high fives and a pay raise.
In other words, people who live in high-foreclosure states were already resigned to the fact that they were fucked, so they decided no one else should get out alive, either. Kind of like setting fire to the tar pit you fell into to that those idiots who didn’t help you also get burned, I guess.
Souped-up adding machines, the lot.
I don’t know about that, although I think a significant part of the conservative mindset these days is, “our side screwed everything up, failed, and have been proven wrong…so let’s burn all the evidence to the ground.”
But if you were generally conservative and you lost your home in a foreclosure scam by a huge bank, who were you going to turn to?
Trump: I’m going to drain the swamp! I’m going to go after the bankers!
Clinton: Everything is wonderful just the way it is, and I’m not going to change anything. Let’s talk about preschool.
Wells Fargo of course don’t actually blame a ‘computer glitch’.
They blame a ‘calculation error’.
relevant section of their SEC filing
Mortgage Loan Modifications
An internal review of the Company’s use of a mortgage loan
modification underwriting tool identified a calculation error regarding foreclosure attorneys’ fees affecting certain accounts that were in the foreclosure process between April 13, 2010, and October 2, 2015, when the error was corrected. A subsequent expanded review identified related errors regarding the maximum allowable foreclosure attorneys’ fees permitted for certain accounts that were in the foreclosure process between March 15, 2010, and April 30, 2018, when new controls were implemented. Similar to the initial calculation error, these errors caused an overstatement of the attorneys’ fees that were included for purposes of determining whether a customer qualified for a mortgage loan modification or repayment plan pursuant to the requirements of government-sponsored enterprises (such as Fannie Mae and Freddie Mac), the Federal Housing Administration (FHA), and the U.S. Department of Treasury’s Home Affordable Modification Program (HAMP). Customers were not actually charged the incorrect attorneys’ fees. As a result of these errors, taken together and subject to final validation, approximately 870 customers were incorrectly denied a loan modification or were not offered a loan modification or repayment plan in cases where they otherwise would have qualified. In approximately 545 of these instances, after the loan modification was denied or the customer was deemed ineligible to be offered a loan modification or repayment plan, a foreclosure was completed. The Company has contacted a substantial majority of the approximately 870 affected customers to provide remediation and the option also to pursue no-cost mediation with an independent mediator. Attempts to contact the remaining affected customers are ongoing. Also, the Company’s review of these matters is ongoing, including a review of its mortgage loan modification tools.
To the extent issues are identified, we will continue to assess any customer harm and provide remediation as appropriate. This effort to identify other instances in which customers may have experienced harm is ongoing, and it is possible that we may identify other areas of potential concern. For more information, including related legal and regulatory risk, see the “Risk Factors” section in our 2017 Form 10-K and Note 13 (Legal Actions) to Financial Statements in this Report.
They appear to have messed up how they calculated attorney’s fees that could be charged. Quite how that error could cause people’s applications to modify their repayment terms to be denied is not explained.
It does at least answer why people think they can sue which puzzled me at first. The loan modification applications were apparently part of federal schemes so there were presumably statutory rules that Wells Fargo was supposed to apply.
Why everyone isn’t out of big banks and into Credit Unions completely baffles me. I made that switch in 2008 after these criminals crashed our economy and kept their cushy, evil jobs. Hell with those guys; they’ve sold out the American people and they can’t have my money anymore.
Lower rates, fewer fees, locally invested -what’s not to like? Plus virtually all credit unions in the US are branches of mine -I can withdraw and deposit just about anywhere for no extra fee.
Regular people can put a stop to these bastards. Deny them their power and move your money.
I would like to second this suggestion! I banked with a locally owned bank that was bought out by Wells Fargo, and eventually came to my senses and switched to a Credit Union. It is so convenient! I save so much money in weird fees! When something went wrong with my daughter’s auto pay on her credit card they called her and helped her fix everything so she didn’t get a late fee. They are nice people!
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