NEW YORK (
said Wednesday a review of its foreclosure affidavit procedures found problems enough for it to take the step of submitting supplemental affidavits for roughly 55,000 foreclosures pending in the 23 states that require a court to review documentation.
The San Francisco-based bank said it found "instances where a final step in its processes relating to the execution of the foreclosure affidavits (including a final review of the affidavit, as well as some aspects of the notarization process) did not strictly adhere to the required procedures."
It added that it doesn't believe the mistakes led to any foreclosures that wouldn't have otherwise occurred, and reiterated it has no plans to halt foreclosures at this time.
The stock closed Wednesday at $25.75, down 16 cents. Year-to-date, the shares have fallen 4%; although they are off almost 25% since hitting a 52-week high of $34.25 on April 21.
"At Wells Fargo, foreclosure is a last resort," said Mike Heid, the co-president of Wells Fargo Home Mortgage, in a
"In September 2010, borrowers who have completed foreclosure were on average 16 months delinquent on their payments. When all options have been exhausted, we believe foreclosures should not be delayed."
The bank is beginning the process of submitting the additional documentation immediately and said it expects to have the process done by mid-November. It said it completed 556,868 mortgage loan modifications in the first nine months of 2010, including $3.5 billion worth of of principal forgiveness, and that it refinanced about 1.9 million mortgage loans during that time.
Written by Michael Baron in New York.
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