Wells Fargo has decided to settle for a total of $67 million on its civil litigation involving mortgages. The bank was accused of robo-signing home loans, or approving foreclosures without going through the proper procedure to analyze whether or not home buyers were indeed delinquent on their accounts. This resulted in many home owners damaging their credit or losing their homes without being aware they were at risk.
Banks were accused of failing to provide proper information to home owners, denying home loan modifications and a variety of other shady practices in order to force home borrowers into foreclosure to maximize profits.
Wells Fargo, along with other banking giants including Citi, Chase and Bank of America® were all involved with the robo-signing scandal.
Wells Fargo has not officially accepted the allegations that it knowingly participated in robo-signing, yet the bank has agreed to pay a total of $67 million in this settlement. The money will be used in three ways to help alleviate the burden placed on your shoulders if you were involved with the Wells Fargo robo-signing scandal.
The first way Wells Fargo will help its customers is by providing assistance for home buyers in areas hit hard by the financial crisis, the second is by providing free counseling to its customers on how to pay back their home loans and thirdly by creating a more structured home borrower service to its customers.
A spokesman had this to say in a statement regarding the matter, “Wells Fargo and its directors are pleased to have resolved the matter. We remain committed to our efforts to assist borrowers facing financial challenges and believe this settlement benefits the company, our customers and our shareholders.”
Three ways you can feel a sense of relief now that there is a settlement
- If you are a Wells Fargo home buyer who was hit by a foreclosure and live in one of the areas hit hard by the financial crisis, you may be eligible to receive down payment assistance for the purchase of a home. Wells Fargo will allocate $36.5 million to people in the following areas: New Haven, Virginia Beach, Albuquerque, Detroit, St. Louis. and California’s Central Valley. Call Wells Fargo’s home mortgage division directly, or visit a branch to learn more about whether or not you qualify for this type of assistance.
- Do you have a home loan through Wells Fargo but finding it hard to pay your monthly bill? Wells Fargo will provide counseling assistance to help provide you with ideas on how you can better manage your money to be able to afford your monthly home loan. Wells Fargo plans to provide $6 million in counseling services to help its current customers avoid delinquency. Visit a local branch to speak to a representative that can help schedule a meeting with a counselor.
- Wells Fargo will spend a total of $24.5 million on improving its lending and servicing operations. The hope from the company is to help provide options to home buyers who are at risk of defaulting on their loan, and to better assist its customers in general. Additionally, the new operations will act as a safeguard to prevent any shady behavior from taking place in the future. Still, your best bet is to thoroughly review all documents and stay up-to-date with the status of your home loan if you suspect something unethical.
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