Wells Fargo Ups Improper Foreclosure Count, Suspends Some Fees

(Bloomberg) -- Wells Fargo & Co. improperly foreclosed on 545 customers after wrongly denying them mortgage loan modifications, up from the 400 borrowers the company disclosed in August.

• The bank also suspended fees on some wealth-management assets and accounts after finding “instances of incorrect fees.” The bank had previously said this was a problem area.

Key Insights

• As Wells Fargo digs deeper into its past misdeeds, the bank continues to add to the number of consumers affected. Three months ago, the San Francisco-based company said it improperly denied mortgage loan modifications to 625 customers, a number that increased to 870 in Tuesday’s filing.
• The lender is facing myriad regulatory probes and conducting its own internal reviews after a series of consumer scandals erupted in September 2016 with the revelation that it opened accounts for as many as 3.5 million customers who didn’t want them.
• The latest disclosures demonstrate that Chief Executive Officer Tim Sloan still has work to do to move Wells Fargo past the scandals after taking the top job two years ago.

Get More

• Read the company’s filing here.

To contact the reporter on this story: Hannah Levitt in New York at hlevitt@bloomberg.net

To contact the editors responsible for this story: Michael J. Moore at mmoore55@bloomberg.net, Steve Dickson, Daniel Taub

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