Wells Fargo: Deja Vu All Over Again; Steady Rates, But There’s a Catch; Freddie Trying to Help Keep Rent Low

Wells Fargo: Deja Vu All Over Again; Steady Rates, But There’s a Catch; Freddie Trying to Help Keep Rent Low

Another day, another Wells Fargo PR disaster. The company is admitting they have foreclosed on about 400 homes owned by borrowers who were not allowed loan modifications to which they were entitled, delayed three years in admitting the problem, and are hoping to cheaply remediate it. The bank disclosed the problem in a filing last Friday with the Securities and Exchange Commission (SEC). Wells Fargo admitted there had been an error in an automated program that persisted for five years and caused over 600 customers to be denied or not offered loan modifications to which they appeared otherwise eligible. The distressed homeowners had applied for the relief primarily through the Home Affordable Modification Program operated by the Treasury Department and the Federal Housing Finance Agency (FHFA