A glitch by Wells Fargo has led to hundreds of mistaken foreclosures, which means that more than 500 of the bank’s customers lost their homes. The financial institution said that a computer glitch is in part to blame for an error that reportedly led to 545 customers losing their homes. The organization filed papers with the Securities and Exchange Commission last month, noting that it had incorrectly denied 870 loan modification requests.
The Wells Fargo mistake led to about 60% of those homeowners finding out that their homes went into foreclosure. The bank said that it was a “calculation error” on loan modifications that had an adverse effect on 870 customers over a period of eight years. A total of at least 545 customers eventually lost their homes to foreclosure, which suggests that Wells Fargo may have a quality control issue.
As of Tuesday afternoon, WFC stock was down close to 4.2% following this news.
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